Trade, Growth, and Jobs

• Author: Amine Mati
• Position: Prepared by of the IMF's Middle East and Central Asia Department. Text and charts are based on the Regional Economic Outlook: Middle East and Central Asia (various sues).

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Countries in the Middle East and North Africa (MENA) have lagged behind emerging market and developing economies in both economic growth and trade over the past two decades, and trade has not been the significant engine of growth in these countries that it has been in others. Not surprisingly, lackluster economic growth in the MENA region has restrained employment growth, which has not kept pace with a rapidly expanding workforce.

Market access

Trade restrictiveness is one important problem holding back the region. It remains high despite significant tariff reforms. Most MENA oil importers have streamlined and lowered tariffs over the past two decades, often via trade agreements with the European Union and the United States. But oil importers’ tariffs—averaging about 10 percent in 2011—remain high.

Regional integration

Trade, particularly in the North African countries, remains oriented...