However, the Overview of economic and social developments in the Arab worldIssued by the United Nations Economic and Social Commission for Western Asia (ESCWA) Projects afterCOVID-19 Economic recovery efforts to produce a very slight decline next year – to 11.7 percent.
Rising Poverty
Meanwhile, poverty, measured by national borders, also rose, affecting 130 million people in Arab countries, the revealed Opinion poll.
Excluding Libya and the Gulf Cooperation Council countries, more than a third of the region’s population is affected.
In addition, the poverty rate is expected to increase over the next two years, reaching 36 percent of the population in 2024.
Good news in growth
Despite the disruptions caused by the COVID-19 pandemic and the war in Ukraine, the opinion poll showed an expected growth of 3.4 percent next year in the entire Arab region.
While inflation rates jumped to 14 percent this year, they are expected to fall to 8 percent and 4.5 percent respectively in the next two years.
Notable deviations
However, despite the region’s positive growth prospects, Ahmed Moummi, lead author of the opinion pollpointed to significant discrepancies between countries – exacerbated by the war in Ukraine.
Noting that the impact is not the same for all Arab states, he claimed that Gulf Cooperation Council countries and other oil-exporting countries would continue to benefit from higher energy prices.
At the same time, oil-importing nations will suffer from several socio-economic challenges, including rising energy costs, food shortages, and a drop in both tourism and international aid funds.
“The current situation offers oil-exporting Arab countries an opportunity to diversify their economies away from the energy sector by accumulating reserves and investing in projects that generate inclusive growth and sustainable development,” said Mr. Moummi underlined.
Through its annual survey, ESCWA provides analysis of the latest social and economic trends in the region to support Member States in developing and implementing evidence-based strategies and improving economic planning processes for sustainable and inclusive development.
