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FINANCIAL NEWS
MENA’s progress dips due to income inequality
04 Feb 2016
(MENAFN) The Middle East faces a weighing hurdle that is not given the needed amount of attention, which is Income inequality, as it’s considered to be a top obstacle to global growth.
If inequality goes up, the income will basically be disturbed from labor to capital; therefore the money is being transferred from people with a propensity to spend to people with a propensity to save.
The interest rates that once worked are not the interest rates that will maintain reasonable growth, plus there is a primary and crucial demand for infrastructure throughout the Middle East.
However, it seems that the regional central banks had found the right broad approach to ensure financial stability by insisting banks boost their capitalization to help insulate them from crises.
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