IMF: Social Unrest and Global Tensions Slow MENA Economic Growth

The Middle East and North Africa (MENA) region has seen its share of violent protests in recent years. Several Arab countries have been experiencing social tensions with unexpected political upheavals since 2010.

The cases in Algeria, Sudan, Iraq and Lebanon are revealing and prove that social tensions are at the root of many difficulties, in terms of economic growth and unemployment, in the MENA region.

The IMF’s Middle East and Central Asia Director, Jihad Azour, had stated on the situation that "the unemployment rate averages 11% across the region, compared to 7% in other emerging and developing economies".

Indeed, two weeks ago, the IMF reduced its 2019 growth forecast for the MENA region, which includes all Arab countries and Iran, to 1%.

And, according to Azour, as reported by AFP, "the growth rate of the countries in the region is lower than what is needed to fight unemployment". The youth unemployment rate in the region would fluctuate between 25 and 30%.

A situation that has consequences for women and young people, according to the report, which specifies that in 2018, more than 18% of women and nearly 23% of young people were unemployed.

"The government must therefore act firmly and quickly to correct these imbalances, restore confidence, address the budgetary situation and reduce spending," he added.