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FINANCIAL NEWS
IMF: MidEast to see 4.5% economic growth in 2010
22 Apr 2010
(MENAFN) The International Monetary Fund (IMF) said in its latest report that the Middle East region would be recovering at a good pace with projected growth of 4.5 percent this year, Reuters reported.
The IMF said that government investment programs, particularly in infrastructure, will continue to boost domestic demand in the near term in many MENA economies.
The Fund pointed out that these measures should remain in place to help reinforce the recovery. However, high debt levels constrain the scope for fiscal stimulus in some oil-importing economies.
The IMF urged governments to maintain the current monetary policies to help support growth in countries with non-pegged exchange rate regimes such as Egypt, if feasible, given subdued inflation pressures.
For other economies in the MENA region which have hard pegs to the US dollar, such as Saudi Arabia, UAE, the IMF said that the countries’ monetary policy mirrors US policy and is appropriately simulative.
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