RIYADH: Arab countries’ economies are likely to grow at an average annual rate of 5.4 percent in 2022 mainly driven by rising oil prices, a hike in crude production by oil exporters and the ongoing reforms to diversify economies, according to a report issued by the Arab Monetary Fund.
The report titled “Arab Economic Outlook” noted that Arab countries could face relatively high inflation rates in 2022 due to local and global inflationary pressures. According to the report, Arab countries’ inflation rate is expected to reach 7.6 percent in 2022 and 7.1 percent in 2023.
It, however, predicted that the economic growth of Arab countries will slow to about 4 percent in 2023 due to a decline in the global economic growth, high commodity prices, and gradual exit from expansionary fiscal and monetary policies.
According to the report, Gulf Cooperation Council economies will grow 6.3 percent in 2022 compared to 3.1 percent in 2021, driven by recovery from pandemic, economic reforms and continued adoption of stimulus packages, while 2023 will see a decline to 3.7 percent in economic growth.
The economy of other oil-rich Arab countries will achieve 4.1 percent growth rate in 2022, compared to a 2.7 percent growth rate in 2021. The growth in these countries will slow down to 4.6 percent in 2023.