Handouts pose danger to Mideast economies

30.10.2011                      02.Cheschwan. 5772                       Sommerzeit endet

Analyse:

Handouts pose danger to Mideast economies

IMF says global slowdown threatens fiscal woes for oil exporters and importers, terms world economy to be in a “dangerous new phase.”

The International Monetary Fund (IMF) warned on Wednesday that the huge increase in handouts that the governments of the Middle East and North Africa (MENA) have made to keep a lid on Arab Spring unrest is a danger for all the economies of the region – both rich and poor.
The budget deficits of oil-importing countries are expected to widen to 7.6 percent of gross domestic product, a 50% rise over two years, the IMF said in its Regional Economic Outlook: Middle East and Central Asia. These spending increases are going mainly to subsidies on food and fuel, while governments are investing less and borrowing more, making it harder for economies to recover, it said….