At the same time, however, 20 to 25 million youths were expected to enter the labor force by 2022. That, in turn, could make it difficult to attract foreign investment, which flows to locations with the best business environment. The paper examines the relationship between labor market developments and private consumption behavior, and notes that employment uncertainty did have a significant negative impact on consumption and raised precautionary savings. The full video from the event is already available on the Middle East Policy Council website. Husain stressed that, in spite of these positive developments, medium-term growth prospects remained muted, especially in light of the job creation challenge in the region. In the long term, however, a prolonged recession is likely to create the potential for social and political instability.
Redirecting such savings to education, infrastructure, and support for the vulnerable would enhance job creation and opportunities for all. Arab economies are, on the whole, weathering the crisis better than others in the short term. Unemployment rates are expected to jump from 9. A common challenge for many countries in the region has been to design and implement reform programs that help lower unemployment and poverty, achieve fiscal consolidation, and raise growth in a manner that is sustainable, inclusive and equitable. In 2015, estimates are not available for two addtional countries: Burundi and Togo.
This helped oil-exporting countries build up foreign assets and lower government debt, cushioning their financial systems, although they did suffer losses from investing in foreign assets. Most oil importers have responded to the crisis by adopting fiscal and monetary policies to ease the pressure and reducing fiscal deficits. In his introductory remarks, His Excellency Dr. Near-term risks are to the downside and tied to the fortunes of large trading partners. Countries in conflict and their neighbours continued to be affected by a difficult security situation. Data are available from 1980 to the present, and projections are given for the next two years. While efforts at diversification and savings varied significantly across the region, this recent boom period realized superior outcomes compared to the 1970s.
Political instability resulting from the 2011 uprisings throughout the region is another example. As Middle Eastern economies are not deeply integrated into the global economy and have fewer links to global financial institutions, they have not been as hard hit by the crisis. To become a member, a country must apply and then be accepted by a majority of the existing members. Recognizing the efforts already made by the Kuwaiti authorities in several important areas, including in curtailing wasteful spending and to raise gasoline and utility prices, Mr. In oil exporters, notwithstanding an improvement in non-oil growth to 2. First, given the limited scope for public sector jobs going forward, he explained that labor market and civil service reforms should encourage Kuwaiti nationals to seek private sector jobs.
First, he noted the importance of saving a sufficient part of the oil wealth for future generations, to allow the economy and its citizens to continue to live prosperously even after oil income dries up. For more details on the methodology and definitions, please refer to Mbaye, Moreno Badia and Chae 2018. The Saudi Vision 2030 in particular has generated significant media coverage and business interest in the United States. Inflation has also increased following a spike in commodity prices in early summer 2008, causing social unrest in Tunisia, Lebanon, Morocco, Egypt, and Mauritania. Data for countries, country groups, and the world are provided. Pre-tax subsidies, which arise when consumer prices are below supply costs, are also reported as a component of post-tax subsidies.
Higher values for the quality indices indicate higher quality levels. This would also help limit wage costs in the private sector and, together with education reforms, aimed at better matching the skills of young graduates with the needs of the private sector, this would in turn encourage Kuwaiti firms to hire nationals, enhance competitiveness, and support higher and more inclusive growth. The provides further monitoring of initiatives taken by Gulf states as they seek fiscal, monetary, and labor policy changes to meet the challenge of reduced state revenue from natural resources. Non-oil producing countries, on the other hand, might show delayed effects as capital inflows from remittances, foreign investment, and tourism revenue fall and affect the rest of their economies. Husain Deputy Director of the Middle East and Central Asia Department, International Monetary Fund ; Ford M. Burton also highlighted the value of greater strategic partnerships as a mechanism to take assets off government books and have them shouldered by the private sector. The panel discussion was chaired and moderated by His Excellency Dr.
The decline in oil prices could boost activity more than expected. As long as the major industrialized countries continue to experience uncertainty about their own growth prospects, the future of direct investment in Middle Eastern economies will also face uncertainty. While some progress has been made in some areas across the region, Mr. Yousef Al-Ebraheem, Economic Advisor at Al-Diwan Al-Amiri. He focused on a number of important impediments that needed to be addressed as a matter of priority.
The Export Diversification Database has three main indicators: the Export Diversification Index, the Extensive Margin, and the Intensive Margin. First, he highlighted the need to improve the quality of education. Roudet pointed to the large difference between compensation in the public and private sectors, and explained that better aligning public sector wages and benefits in the two sectors would provide more incentives for nationals to seek jobs in private sector firms. Young Senior Resident Scholar, Arab Gulf States Institute; Non-Resident Fellow, London School of Economics Middle East Centre. The Balance sheet shows stock positions in assets and liabilities, with their main components, as well as net worth and net financial worth. He noted that doing so in a more constrained budgetary environment required rethinking the economic growth model, moving away from public-sector and oil-led growth and towards a model based on private sector development and diversification. Saudi Arabia has on several occasions used its systemic role to raise production to fill global demand gaps created by large supply disturbances.