IMF Urges Mideast, S. Asia Nations To Revive Economies With Private Investment - Report

IMF Urges Mideast, S. Asia Nations to Revive Economies With Private Investment - Report

WASHINGTON (UrduPoint News / Sputnik - 21st November, 2018) Policies that promote private investment, such as increased enrollment in secondary schools and providing universal access to electricity, offer the means to revive sluggish economies of nations in middle East, Afghanistan and Pakistan, according to a report by the International Monetary Fund (IMF) on Wednesday.

"Amid increasing risks clouding the global economic outlook, and with continued technological innovation promising to change the very nature of work, countries in the region urgently need bold reforms if they are to achieve inclusive growth today and for future generations," a press release summarizing the report stated.

The IMF recommended policies to boost secondary school enrollment from the present 50 percent level to 75 percent - a rate achieved in other developing nations, as well as policies to ensure access to electricity.

For half the countries in the region, the ratio of private investment-to-GDP has been lower since the 2011 Arab Uprising, compared to the period that preceded the 2008-09 global financial crisis, the release noted.

"This decline has had a profound effect on the economic health of the region, translating into an annual loss of 1.5 percentage points of growth on average for oil exporters and close to 1 percentage point on average for oil importers," the release said.

Private investment generated by improved access to both secondary education and electricity could boost annual economic growth rates in the region by 1.75 percent, the release pointed out.

The report also recommended that nations in the region improve legal systems, introduce modern banking and enact other financial reforms to attract private investment, according to the release.