Arab News, Mon, Feb 12, 2024 | Shaban 2, 1445
Arab nations see 9.8% surge in public expenditure, reaching $957.5bn in 2022: report
Saudi Arabia:
Arab countries witnessed a 9.8 percent increase in total public expenditure,
reaching $957.5 billion in 2022, compared to $878.9 billion in 2021, according
to a recent analysis.
The 43rd edition of the Arab Monetary Fund’s Joint
Arab Economic Report disclosed that combined current expenditures in these
nations jumped 9.9 percent to $824.6 billion in 2022, compared to $750.7 billion
in 2021.
The study highlighted a 3.6 percent increase in
capital expenses, reaching $132.5 billion. The publication also noted that the
public budgets of Arab countries reported a surplus of $119.6 billion in 2022,
contrasting with a deficit of $62.5 billion in 2021.
Meanwhile, the average per capita gross domestic
product at current prices also increased by about 22.1 percent, rising from
$6,993 in 2021 to $8,563 in 2022.
In addition, the GDP of Arab nations at constant
prices increased by about 6 percent in 2022, following a growth rate of 3.6
percent in 2021.
The economic performance of Arab countries, which
are among the leading exporters of oil and gas, experienced improvement due to
the sustained increase in global market prices for these commodities,
particularly during the first half of 2022.
On the other hand, other Arab nations faced
challenges as their import bill for oil, gas, and food products increased,
constraining their recovery.
The publication highlighted that financial strain,
high public debt, and inflation restricted the region’s ability to implement
effective economic policies.
Despite these challenges, sectoral growth rates
for these countries indicated an improvement in the performance of most sectors,
particularly in the extractive industries sector, followed by the manufacturing
sector.
The impact of international developments on global
prices of energy and food materials has led to varying degrees of recovery. This
depends on the structural characteristics of individual economies and the
capabilities of their governments to implement expansionary financial policies,
the report added.
The Joint Arab Economic Report is a collaborative
effort between the Arab League, the Arab Fund for Economic and Social
Development, the Arab Monetary Fund, and the Organization of Arab Petroleum
Exporting Countries, known as OAPEC.