By Christian Lowe in Algiers, Suleiman Al-Khalidi in Amman, Shaimaa Fayed in Cairo, Asma Alsharif in Jeddah and Souhail Karam in Rabat | Reuters – 14 hrs ago
DUBAI (Reuters) – Political unrest across the Arab world has increased pressure on governments to boost economic growth and provide jobs for restive populations. That will require economic reforms, but for now at least, governments have become less willing to consider many reforms because of a public backlash against business elites and the risk that policy changes could hurt living standards in the short term.
Here is the outlook for key economic reforms in selected Arab countries:
ALGERIA
Energy policy. Algeria responded to the Arab Spring with public sector wage rises, more generous food subsidies and handouts to the young unemployed; with foreign currency reserves of about $150 billion, it can continue to do this. But it faces a long-term threat: gas production from Algeria’s biggest fields has reached a plateau and will soon start dropping. There is growing acknowledgement in the government that the restrictive hydrocarbons law must be liberalized to spur gas investment, but so far no reform plans have been announced.
EGYPT
