The IMF isn’t overly concerned about the impact of higher oil prices on Egypt’s fiscal reforms, according to IMF’s Middle East & Central Asia Department Director Jihad Azour. In an interview with Al Shorouk on the sidelines of the IMF’s economic conference in Morocco, Azour said fiscal imbalances which could arise from higher oil prices can be counteracted by implementing an efficient tax system and combating corruption. He added that it is too soon to tell what, if any, the impact higher oil prices would have on Egypt’s budget deficit.

Brent crude continues to hover just cents below USD 60 a barrel this morning after talk in recent weeks from Saudi Arabia and Russia signaling that their production cuts could continue into 2019. Bloomberg and OilPrice have more on that front.

Speaking on unemployment, Azour said that MENA region’s unemployment rate stands at 10.6%, which is worrisome considering that 27 mn people will enter the workforce by 2023, and 60% of the region’s inhabitants will be under the age of 30. GDP growth by improving the business climate coupled with increase spending on health and education is the only way to combat this rising unemployment, he added.

Azour also spoke on the dangers of civil unrest during transitional periods in economic reforms in light of the protests in Tunisia. He defended Tunisia’s adoption of economic reforms, saying that it was heading in the right direction. “Any reform has its transition phase. During the transition phase what is important (is) to make sure they have the right mitigators, the right social programmes,” Azour said, according to Reuters.