Arab Economies Set to Grow by 3.3 Percent in 2024
Get ready for a boost in Arab economies! A new analysis by the Arab Monetary Fund predicts a growth of 3.3 percent in 2024, a significant jump from the 2.2 percent recorded in the previous year.
Inflation Rate Expected to Decline
The latest report from the Arab Monetary Fund also anticipates a decline in the inflation rate across its 22 member states. The rate is projected to drop to 3.3 percent this year, a substantial decrease from the 9.3 percent seen in 2023.
Challenges Faced in 2023
Arab economies faced challenges in 2023 due to regional and international developments. Tighter monetary policies to combat inflation and fluctuating commodity prices had a significant impact on the economies in the region.
Support from Arab Monetary Fund
Fahad Al-Turki, director general and chairman of AMF, highlighted the Fund’s commitment to supporting Arab member countries. This includes providing concessional financing for economic reform programs and aiding in the development of human capital through training and technical support initiatives.
Positive Projections for GCC Region
The World Bank has projected positive economic growth in the Gulf Cooperation Council region. With oil production quotas expected to increase in the second half of 2024, the GCC’s oil GDP is set to experience significant growth, reaching 6.9 percent in 2025.
Saudi Arabia’s Economic Outlook
Saudi Arabia’s real gross domestic product is forecasted to grow by 2.5 percent in 2024, primarily driven by robust non-oil private activities. The country’s economy is expected to see a boost with a growth rate of 4.8 percent in this sector.