Mubasher: The International Monetary Fund on Tuesday said that Arab countries have made significant economic progress over the past few years, but noted that the continued "public dissatisfaction" indicated that more actions were needed.

“There has been progress – though not enough,” IMF managing director Christine Lagarde said in a two-day regional conference held in Marrakesh, Morocco.

Lagarde praised the reform actions that have been implemented in the region such as leveraging technology to boost economic and financial inclusion and taking further steps to improve the business environment.

“The good news is that the stronger global economy offers a window of opportunity for reforms,” the IMF’s chairperson added, noting that the Arab world needs to stimulate inclusive growth more than ever before.

The region’s priorities should be creating a strong private sector that allows for higher growth, supporting excluded groups like youth, women, rural populations, and refugees, and use fiscal policy to invest in people and infrastructure, according to Lagarde, who further stressed that "fiscal policy can and must be redesigned to support inclusive growth in the region." 

“Many are clearly struggling with “how” to scale up reform implementation, and turn these priorities into outcomes,” she added.

The IMF expects the Arab region, which posts the highest unemployment rate in the world, to add more than 27 million jobs over the coming five years.

Meanwhile, the economic growth in the region would likely accelerate to 3.5% during 2018 and 2019 but remain well below the 5.6% rate seen in the period from 2000 until 2008.

"Today's youth are the Arab region's greatest potential. We must heed their aspirations and rise to their expectations," the IMF’s top official emphasised.