Monday, June 24, 2024

4.4% growth in Arab output will reach $ 2.8 trillion by 2021


Kuwait (Union)

The Arab Corporation for Investment and Export Credit Guarantee (DAM) has revealed that Arab gross domestic product (GDP) will grow by 4.4% in 2021 to cross $ 2.8 trillion, and is expected to reach a positive growth rate of 4.5% in 2022. About $ 3 trillion, it will shrink by 4.5% in 2020.
In a statement issued on the occasion of the release of the fourth quarter bulletin “Investment Guarantee” for 2021, the company attributed the relative improvement in the performance of the Arab economy in 2021 to the relative decline in the effects of the Corona. The crisis, in addition to the significant rise in oil prices, indicates that its revenues still play a key role in production, exports and government revenues. According to the International Monetary Fund’s estimate for October 2021, the improvement in the performance of the world economy and its growth in 2021 is projected to be 5.9%.

Indicators have been improved
Abdullah Ahmad al-Sabeeh, director general of the corporation, said in an editorial that most indicators of the Arab economy’s performance in 2021 showed significant improvement compared to 2020. Countries increased by 13% to an average of $ 6,375 and are expected to continue to grow to 15,445, although the population increased from 443 million to 452 million over the same period, reaching an average of $ 6,612 by 2022.
Crude oil production in the Arab world increased by 2.7% to 21.9 million barrels per day, and its exports increased by 2.9% to 16.2 million barrels per day. 6.9% to 11.8 million barrels per day. Its exports also increased by 6.1% to reach 4.6 million barrels per day.
The consolidated deficit of the Arab budgets fell by 53.8% to $ 102.1 billion, and the percentage of this deficit fell to about 3.7% of Arab output.

  • Abdullah Al-Sabeeh

Government debt
With the expectation of a decline of 54.3% in 2022, the debt-to-production ratio in the Arab world fell to 56.5%, indicators for credit improved, and the external debt-to-output ratio fell to 62%. Production is expected to reach 56.7% by 2022.
Arab foreign trade recovered significantly, reaching 21.7% to $ 2.2 trillion, resulting in Arab exports growing by 31.1% and Arab imports at 12.6%. It will increase further in 2022 to reach about $ 2.4 trillion. As a result, the Arab trade deficit for 2020 will become a surplus of $ 133 billion by 2021.
The current account balance of the Arab world will shift from a deficit of $ 77.3 billion to a surplus of $ 68.7 billion by 2020, representing 2.5 percent of output.

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Arabic balance
Arab foreign exchange reserves exceeded one trillion dollars, enough to offset Arab imports of goods and services for about 10.5 months, with its stability in this range by 2022.
In this context, the Foundation has called on member states for greater cooperation and coordination on economic issues in general, and trade and investment files in particular. By strengthening its partnerships with export and investment insurance companies in the region and around the world by developing new services and expanding the scope of their work in various member countries.
The Arab Institute for Investment and Export Credit Guarantee (DAMON) was established in 1974 and is a multilateral company headquartered in Kuwait, comprising all Arab countries and four joint Arab financial institutions.

Nadia Barnett
Nadia Barnett
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