(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.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.