Arab Economic Landscape in 2024: Key Insights
In 2024, Iraq and four other Arab nations accounted for over 70% of the Arab Gross Domestic Product (GDP), which surpassed $3.6 trillion, marking a growth of 1.8% compared to 2023. This information is detailed in the fourth quarterly bulletin titled "Investment Guarantee" for 2024, published by the Arab Investment and Export Credit Corporation.
Key Contributors to Arab GDP
The five countries leading this economic output are Iraq, the UAE, Saudi Arabia, Egypt, and Algeria. Together, they are pivotal to the Arab economy’s performance, driving significant growth and investment opportunities.
Future Projections
Looking ahead to 2025, the Arab economy is projected to grow at a rate of 4.1%, bolstered by the anticipated expansion of 14 Arab nations. Notably, nine of these countries are oil producers, contributing approximately 78% to the overall Arab GDP.
Economic Indicators
Though there is noticeable income disparity among various countries within the region, the average individual income across the Arab nations is expected to rise from $7,557 in 2024 to about $7,602 in 2025, reflecting a 1% increase.
As of 2024, the total population of Arab countries exceeded 467 million with a growth rate of 2%. However, regional unemployment has increased to an average of 9.7%.
Inflation and Debt Dynamics
In terms of inflation, the Arab region experienced a rise, with rates reaching 12% in 2024; however, a decline to 8.5% is anticipated in the current year.
Regarding public finances, the proportion of Arab government debt has decreased to 48.3% of GDP, with forecasts suggesting a further decline to 47.6% by 2025.
Trade and Reserve Performance
The value of Arab foreign trade in goods and services has risen by 3.6%, totaling over $3.3 trillion in 2024. This growth is attributed to a 1% increase in exports, while imports surged by 7%.
Additionally, foreign currency reserves of Arab countries have grown by 3.7%, reaching approximately $1.2 trillion, providing sufficient coverage for over eight months of imports for goods and services.
Conclusion
These insights outline a complex but promising picture of the Arab economy as it navigates growth, challenges, and opportunities in both regional and global contexts. The expected upward trends in GDP and individual income reflect a resilient economy poised for further expansion, driven by strategic trade and fiscal management.
