The stimulus plans adopted by the Arab countries since the start of the pandemic until last July amounted to nearly 344 billion dollars, of which 57% in the form of support measures granted by the tools of monetary policy , announced the Arab Monetary Fund (AMF).
Fiscal stimulus plans constitute the remaining 43%, notes the FMA in its latest report on the Arab economic outlook.
It emerges from this report that the Arab economies will experience growth of 2.9% in 2021 and 3.6% in 2022, thus reflecting the positive impact of vaccination campaigns, increased overall demand and continued support. politics.
The inflation rate is expected to remain relatively high in 2021 (11%), driven up by the economic recovery and rising commodity prices, adds the same source, who expects inflation to fall to around 6% in 2022.
Faced with uncertainties related to the economic recovery (trajectory of the pandemic after the emergence of new variants of the coronavirus in some countries as well as the growth trajectory with the gradual withdrawal of stimulus plans), the report continues, Arab governments are called upon adopt comprehensive reforms to overcome external and internal imbalances and strengthen economic resilience.
Thus, the Fund stresses the need to foster policies that ensure a sustainable economic recovery, support confidence, strengthen resilience in the face of possible economic shocks and correct the imbalances that hamper progress towards sustainable, inclusive and balanced growth.
It is also about implementing economic reform programs that respond to the short, medium and long-term challenges facing Arab countries, so as to ensure inclusive and sustainable growth, and address internal structural imbalances and to ensure that economic resources are allocated for economic growth, it is added.