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Thursday, February 13, 2025

Reshaping Perspectives and Catalyzing Diplomatic Evolution

Arab Monetary Fund predicts 4.2% growth for UAE economy in 2023

In a recent report titled “Arab Economy Outlook”, the fund said the UAE economy is expected to grow by 4.2% in the current year 2023, while the price index consumption is expected to decline to 2.9% in 2023 and 2.57%. in 2024.

Arab economies

The report forecasts Arab economies to grow by around 3.4% in 2023, with stable oil and gas prices, lower commodity prices, including agricultural products, and corresponding tightening of monetary policies to reduce inflation.

The report notes that Arab countries that have adopted economic reform programs, visions and strategies to diversify their economies and increase their relative strength, reform the business environment, encourage the role of the private sector and support human capital seem more able to cope with shocks.

The report predicted that the pace of economic growth in Arab countries would improve in 2024, to register around 4%, an improvement due to expectations of stable oil and commodity prices and tight control of inflation. .

oil exporting countries

He pointed out that the main oil-exporting Arab countries will benefit from the improvement in energy price levels, as this should have positive effects on the economic growth of these countries during the years 2023 and 2024, and that the group of major oil companies – exporting countries will experience a growth rate of 3.4% in 2023, which will increase to 4.2% in 2024.

The report indicates that the outlook for the Gulf countries in 2023 is even more optimistic, as the gross domestic product is expected to grow by 3.4% in 2023, especially in light of the trend of the economies of the Gulf. Gulf to more diversification, which indicates that oil price stability is at relatively high levels, would result in higher oil revenues and could lead to higher fiscal benefits, foreign exchange reserves and fiscal position stronger public.

The fund expects Saudi Arabia to return to center stage in 2024 when it grows by 5.7%, compared to 3.3% in the United Arab Emirates. Algeria, Iraq, Yemen and Libya, which depend on oil exports, are expected to experience moderate growth of 4.2% on average in 2023.

The report pointed out that one of the other avenues defining growth prospects in the GCC countries is the group’s emphasis on nationalizing the labor force in the private sector and increasing the rate of unemployment. citizen participation in the workforce, especially in the United Arab Emirates, Saudi Arabia. Arabia and Bahrain.

oil importing countries

The Arab Monetary Fund report predicted that the group of oil-importing Arab countries would reach a growth rate of 3.1% in 2023, rising to 4% in the next year 2024, with control of the wave of inflation at the end of this year, and the easing of tight monetary policies.

In detail, growth oscillates between 3.7% in Egypt and 3% in Morocco in 2023. Lebanon is also expected to experience positive growth for the first time in 6 years, at 2.1% after a decline of 6.1 % in 2022.

According to the report, forecasts by international organizations for global economic growth, released in early 2023, ranged between 1.7 and 2.9 percent for 2023, and between 2.7 and 3.1 percent for 2024.

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Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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