Abu Dhabi: Poverty and econ-omic mismanagement were behind the revolutions in some Arab countries, said Thamer Al Ani, Director of the Studies and Economic Relations Strategy Department at the Arab League.

Unemployment rates have increased in some Arab countries. More people now live below the poverty line and GDP growth has failed to match the rapid population increase of around 2.5 per cent a year, pushing the per capita income in the region further down, said Al Ani, who was speaking on behalf of Arab League Secretary General Nabeel Al Arabi.

Poor people

"The first group of countries are those stricken by extreme poverty. The proportion of poor people exceeds 40 per cent of the population in those countries — such as Palestine, Somalia, Mauritania, Yemen and Sudan where a majority of the population suffers from poverty; many of them even fall within the classification of extreme poverty," said Al Ani at the Union of Arab Banks meeting.

"The ratio of poverty in Egypt is 21 per cent; it is 10 per cent in Syria, Iraq, Tunis and Algeria. The unemployment rate is 14 per cent compared to an international average of nearly 5.7 per cent. Arab countries need to create nearly 40 million jobs by 2020 to tackle unemployment through reforms," Al Ani added.

"The IMF report reduced its GDP growth expectations for the Arab countries for 2012 from 5.1 per cent to 4 per cent," he said, warning that "some Arab countries would witness negative growth".

"The sectors that were badly hit were trade, banking and finance, real estate and hospitality," said the Arab League official.

"Evidence shows that unemployment, depression in wages and worsening working conditions are on the rise in response to the slowing of activities in finance, construction, tourism, services and real estate."

Al Ani said that the Arab countries should have an immediate response to accelerate measures that are aimed at addressing pressing issues such as unemployment and social imbalance. Marwan Awad, CEO of Jordan National Bank, told Gulf News that inflation rates in the Arab countries would remain at accepted levels in 2012.

Normal levels

"We expect inflation rates to be at normal levels and will stand at 4.2 per cent in 2012," Awad added.

"Government spending has risen sharply and the GCC states [except Bahrain] are still projected to run healthy fiscal and current account surpluses in 2012," Yousuf Al Nuaimi, CEO of A Sahm Group, told Gulf News.

Public spending in the GCC states has risen by between 30-60 per cent since 2008.