Posted on March 18, 2013 by iMFdirect
By Christine Lagarde
(Version in عربي)
I was in Algiers last week, my first time as the Managing Director of the IMF. It was a good visit: we reaffirmed the special partnership between Algeria and the IMF, and I was able to gain a deeper insight into Algeria’s aspirations—and also its challenges in reaching a hopeful future.
Filed under: Africa, International Monetary Fund | Tagged: Algeria, budget, business leaders, Christine Lagarde, civil society organizations, debt levels, economy, employment, energy, external deficits, gas, grwoth, IMF, iMFdirect, inclusive growth, inflation, International Monetary Fund, jobs, labor market policies, oil, private sector, productivity, subsidies, women, youth unemployment | Leave a comment »
Posted on October 11, 2009 by iMFdirect
By Masood Ahmed
Middle East oil exporters are squarely facing the worst financial crisis since the Great Depression head on. Despite the sharp drop in oil prices last year, the oil exporters rightly decided to maintain spending by drawing upon reserves amassed during the boom years.
High public spending and exceptional anticrisis financial measures have not only cushioned oil exporters’ own economies but are also contributing to sustaining global demand. They have also helped the interlinked economies of neighboring oil importers.
Facing this boom-bust cycle
Between 2004 and 2008, Middle East oil-exporting countries grew by about 6 percent a year and accumulated $1.3 trillion in foreign assets. With the striking drop in oil prices—from a peak of $147 per barrel in mid-2008 to around $30 per barrel at the beginning of 2009—the countries of the Gulf Cooperation Council (GCC) have been hardest hit. Iraq and Saudi Arabia are expected to see the most pronounced drops in oil GDP growth—8 and 15 percentage points, respectively—this year.
Despite sharp drop in oil prices last year, oil exporters rightly decided to maintain spending by drawing on reserves amassed during boom years (photo: Wathiq Khuzaie/Getty Images)
During the precrisis boom years, banks had lent substantial amounts for real estate and equity purchases and made large profits. With the onset of the crisis, asset values fell sharply and the global deleveraging led to a severe tightening of credit conditions, especially in the GCC. Banks’ balance sheets have come under pressure credit growth has slowed sharply—up to 40 percentage points in Qatar.
Filed under: Economic Crisis | Tagged: Algeria, bank financing, G-20, Iran, Iraq, Libya, oil exporters, Saudi Arabia, Sudan, Yemen | 1 Comment »