IMF Promotes Debate on Economic Change in the Middle East

Mideast countries face challenges of low growth and unemployment

Ambitious reforms needed for sustainable, job-rich growth

IMF hosts high-level events in Amman, Kuwait to discuss reforms

The global lender sponsors discussions among experts, policymakers, and other stakeholders on the necessary reforms.

Economic challenges facing the MENA region were high on the agenda of the 2014 IMF-World Bank Spring Meetings that took place in Washington D.C. last week. The meetings brought together ministers and top government officials, as well as journalists, academics, bloggers, and representatives of civil society and the private sector from all over the world to discuss the critical issues facing the world economy.

In addition to official meetings with country delegations, a number of seminars and briefings focused on the region. In a semiannual gathering, IMF Managing Director Christine Lagarde met with ministers of finance and central bank governors from the region to discuss pressing economic issues, listen to their perspectives and explore options for moving ahead.

IMF officials emphasized that the 188-member institution is ready to engage and committed to help all countries of the region, including the Arab Countries in Transition—Egypt, Jordan, Libya, Morocco, Tunisia, and Yemen.

“The IMF has been engaged with all countries that wanted to have a partnership with us,” said Lagarde. She cited the IMF’s program engagement with Jordan, Morocco, and Tunisia; the technical assistance to Egypt and Libya; the program discussions with Yemen; and the upcoming regional conference in Amman. “We very much hope that we can continue those partnerships and relationships, those that exist and those to come,” she added.

Outlook and policy priorities

The economic situation remains difficult for the region’s oil-importing countries, especially those that started a political transition more than three years ago.

“These countries will see another year of tepid economic activity, with growth projected at around 3 percent,” IMF Middle East Department Director Masood Ahmed told reporters in Washington last week during a briefing on economic developments in the region. “The main reasons for this continued modest economic growth is the still-weak confidence, particularly in countries undergoing political transitions, in addition to spillovers from regional conflicts, especially in Syria,” he added.

Despite some cautiously positive signs—rising exports and...