Arab economies are expected to hit 5.4% growth compared to 3.5% in 2021, mainly driven by key factors such as the relative improvement in global demand levels and growth of oil and gas sectors, according to Dr Abdulrahman bin Abdullah Al Hamidy, the Chairman of Arab Monetary Fund (AMF).

 

He was addressing the 46th Ordinary Session of the Council of Arab Central Banks and Monetary Authorities Governors hosted by Saudi Arabia under the patronage of King Salman bin Abdulaziz Al Saud.

 

Al Hamidy pointed out that another big factor for the Arab economic growth was the governments' continuing to adopt stimulus packages to support economic recovery. 

 

In the meantime, the pace of economic growth for Arab countries is expected to decline in 2023 to record about 4%, in line with the decline in the global economic growth rate, the expected decline in commodity prices, and the impact of the gradual withdrawal from expansionary fiscal and monetary policies that support the aggregate demand side.

 

On the global economy, AFM cjhief said as per the recent estimates by international financial institutions, will achieve a growth rate of about 3.2% in 2022 and 2.9% in 2023.

 

"Those estimates were relatively optimistic at the beginning of the year, amounting to about 3.5% and 4.4%, respectively, which reflects the state of uncertainty and what global developments will bring about and the possibility of the global economy entering a phase of so-called stagflation, given that fact that the latest estimates indicate a rise in the global inflation rate, to reach about 8.3% in 2022, and 5.7% in 2023 compared to an average of 3.2% and 4.7% in 2020 and 2021, respectively," he added.-TradeArabia News Service