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Report: Public spending in Arab countries will grow by 9.8% in 2022, reaching $957.5 billion
RIYADH: Total public spending in Arab countries increased by 9.8% to reach $957.5 billion in 2022, compared with $878.9 billion in 2021, according to recent analysis.
The 43rd edition of the Arab Monetary Fund’s “Joint Arab Economic Report” revealed that the total current expenditure of these countries will grow by 9.9% in 2022, reaching US$824.6 billion, compared with US$750.7 billion in 2021.
The study highlighted a 3.6% increase in capital spending to $132.5 billion. The publication also noted that Arab countries’ public budgets will achieve a surplus of US$119.6 billion in 2022, compared with a deficit of US$62.5 billion in 2021.
At the same time, per capita gross domestic product in current prices also increased by about 22.1%, from US$6,993 in 2021 to US$8,563 in 2022.
In addition, the gross domestic product of Arab countries at constant prices will grow by about 6% in 2022, after growing by 3.6% in 2021.
The economic performance of the Arab country, one of the major exporters of oil and natural gas, improved as global market prices for these commodities continued to rise, especially in the first half of 2022.
On the other hand, other Arab countries face challenges from rising oil, gas and food import bills, limiting their recovery.
The publication highlights that financial strains, high public debt and inflation limit the region’s ability to implement effective economic policies.
Despite these challenges, sectoral growth rates in these countries show improved performance in most sectors, especially the mining sector, followed by manufacturing.
The impact of international developments on global energy and food raw material prices has led to varying degrees of recovery. This depends on the structural characteristics of each economy and the ability of its governments to implement expansionary financial policies, the report added.
The Joint Arab Economic Report is a collaboration between the Arab League, the Arab Fund for Economic and Social Development, the Arab Monetary Fund and the Organization of the Arab Petroleum Exporting Countries (OAPEC).
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