(MENAFN- Qatar News Agency) ha April 19 - The International Monetary Fund (IMF) has been successful in recent years in restoring confidence in several Middle East and North Africa (MENA) countries. Since 2011 it has pledged about USD10 billion in financial support to Jordan Morocco and Tunisia to implement their adjustment programs and restore investor confidence. Despite their individual differences the ongoing programs share three common causes namely large domestic subsidies regional instability and unfavorable global economic conditions said Qatar National Bank Group (QNB) in its weekly analysis. The plan to tackle the corresponding economic domestic and external imbalances in the three countries has been successful although more work needs to be done to reduce wasteful spending spur economic growth and reduce the high unemployment rates. Jordan Morocco and Tunisia shared three causes for their crises: large expenditure on subsidies regional political instability and unfavorable global economic conditions. First each of them suffered from a structurally large bill on domestic subsidies ranging in 2011 from about 4% of GDP in Tunisia to around 6% of GDP in each of Jordan and Morocco. This resulted in a significant economic and fiscal drag on its own. It also meant that these economies were particularly vulnerable to the two other shocks that hit them. (MORE)
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