The Currency Newshound

WASHINGTON: International Monetary Fund chief Christine Lagarde yesterday said economic growth in the Middle East and North Africa must include all members of society to fulfill the promise of the Arab Spring. Lagarde, in a speech in Washington, said the Arab Spring that began a year ago in Tunisia was at a “delicate transition point” as the MENA region seeks to define its future. “While each country in the region must find its own path to change, the over-arching economic goals of the Arab Spring remain clear-higher growth, growth that creates more jobs, and growth that is shared equitably among all strands of society,” she said.

The IMF managing director said that, despite some setbacks in the region, she remained “ever hopeful” that the Arab Spring is still poised to unleash “the potential of a better future for all.” However, the region faces challenges after governments reacted to social pressures by increasing subsidies, wages and other subsidies, which has undermined economic stability. “Fiscal deficits have widened, which raises concerns about sustainability. It pushes up interest rates, which makes it harder for the private sector to get credit to set up or expand businesses and start hiring people,” Lagarde said in a speech at the Woodrow Wilson Center. (more…)