Economy News – Baghdad
In 2024, Iraq and four other Arab nations accounted for over 70% of the total Arab GDP, which surpassed $3.6 trillion, reflecting an increase of 1.8% compared to 2023.
This data is highlighted in the fourth quarterly bulletin, “Investment Guarantee,” for 2024, issued by the Arab Investment and Export Credit Corporation.
The five primary nations contributing to the Arab GDP include Iraq, the UAE, Saudi Arabia, Egypt, and Algeria.
Forecasts for the Arab economy in 2025 suggest a growth rate of 4.1%, driven by economic growth in 14 Arab states, including 9 oil-rich countries that together represent approximately 78% of the region’s GDP.
Despite notable income disparities among regional nations, the projected average income for individuals in Arab countries in 2024 is $7,557, with expectations of a slight increase of about 1% to $7,602 in 2025.
The Foundation’s statistics indicate that the total population of Arab nations exceeded 467 million in 2024, marking a growth rate of 2%. During this period, the region also experienced an uptick in the average unemployment rate, reaching 9.7%.
On the inflation front, the Arab region recorded an inflation rate of 12% in 2024, with projections indicating a decline to 8.5% in the current year.
In terms of government debt, the percentage relative to GDP fell to 48.3%, with expectations for further reduction to 47.6% in 2025.
The Foundation also noted an increase in the volume of Arab foreign trade in goods and services, rising by 3.6% to exceed $3.3 trillion in 2024. This growth is attributed to a 1% rise in export values, while import values increased by 7%.
Foreign currency reserves in Arab countries registered an increase of 3.7%, totaling approximately $1.2 trillion, sufficient to cover over eight months of import requirements for goods and services across the region.
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