Arab Economy Predicted to Grow at 3.4% in 2023, Expected to Rise to 4% in 2024: Arab Monetary Fund Report

The Arab Monetary Fund Expects 3.4% Economic Growth in 2023

The Arab Monetary Fund expected the Arab economy to grow at around 3.4 percent in 2023, with the Arab economy expected to rise to 4 percent in 2024.

The Arab Monetary Fund has recently published a report called “Arab Economic Outlook” that includes the expected economic growth rate of Arab countries in 2023 and 2024. According to the report, the Arab economy is expected to grow at around 3.4% in 2023, which is a hopeful projection for the economies in these countries.

Arab Economic Growth is Predicted to Reach 4.0% in 2024

The report goes on to predict an economic growth rate of 4.0% in 2024, which is better than the 2023 prediction. The improvement is attributed to recovery in global growth, low interest rates, and continued development plans. Such a projection would be unprecedented for Arab countries and could serve as a significant stepping stone for even further growth in the future.

Inflation Rates Projected to Decline in Arab Countries

The report also stated that the rate of inflation in Arab countries is expected to decline. Removing any countries facing significant inflationary pressures, inflation is estimated to reach 6.8% in 2023, and even lower at 6.3% in 2024.

Public Finance Reform Priorities Over the Next Two Years

Reform priorities for policymakers in Arab countries in areas of public finance have been listed in the report. This includes reviewing tax rates to maximize public revenues, streamlining tax incentives, and reviewing support policies. The report also lists the development of social safety nets as a priority public expense policy for Arab countries.

The Most Important Issues and Priority Topics for Central Banks

The report also discussed the most important issues and priority topics for central banks and Arab monetary and financial institutions in the next 2 years. These priorities include developing frameworks and tools for managing monetary policies, strengthening the target range of exchange rates, introducing modern financial technologies, and further developing macroprudential policies.

With these positive projections, it seems the future of Arab economy looks better and brighter on the horizon, especially in a global landscape that still faces economic uncertainty.

Source: Arab Monetary Fund

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