Economic Growth Rate for Arab Countries Set to Rise to 5.4%

The expected economic growth rate for the Arab countries will rise to 5.4 percent in 2022 due to rising oil prices, the increase in production in Arab oil-exporting countries, and the continuation of reforms that promote growth.

This expected rise is shown in the Seventeenth Edition of the Arab Economic Outlook Report (AEOR), released by the Arab Monetary Fund (AMF) today.

Arab countries are expected to face relatively high inflation rates in 2022 due to local and global inflationary pressures, the AEOR noted.

It is anticipated that growth paths in Arab countries will be affected by significant factors during 2022 and 2023..

The growth rate of the Arab economies as a group is projected to rise to about 5.4 percent in 2022, a significant increase from about 3.5 percent in 2021. 

Oil-exporting countries in the Arab World will benefit throughout 2022 from the increased oil production quantities within the "OPEC+" agreement and relatively higher oil and gas prices in international markets, which will support public spending to enhance growth. Overall, Arab oil producers are expected to grow by 6 percent in 2022, compared to 3.2 percent in 2021, while oil prices are expected to decline in 2023.

The GCC countries are expected to record a relatively high growth rate of 6.3 percent in 2022, compared to 3.1 percent in 2021, thanks to a combination of factors, including the recovery from the COVID-19 pandemic, economic reforms, and continued adoption of stimulus packages, while 2023 will see a decline to 3.7 percent in economic growth.

As for other Arab oil exporters, they will benefit from increased production quantities within the OPEC+ agreement and a rise in global oil prices to raise their growth rates. As a result, they are expected to achieve 4.6 percent in 2022, which is higher than 3.1 percent in 2021. However, due to business environment challenges, their growth rate will come down to 3.9 percent next year.

This article was previously published on UAE Moments.To see the original article, click here