Public debt and economic growth in Arab countries: structural or short-term benefits?

The way public debt affects economic growth in the Arab region is heterogeneous and depends on the country's income level group.

The Arab Monetary Fund (AMF) has published an economic study titled "Public debt and economic growth in Arab countries: structural or short-term benefits?”. This research covers twenty-one Arab countries between 1990 and 2021. It investigates if the public debt improves production capacities and long-term growth in the Arab region or if its effects are limited in the short run.

Public debt and economic growth in Arab countries: structural or short-term benefits?

The way public debt affects economic growth in the Arab region is heterogeneous and depends on the country's income level group.

For middle- and high-income Arab countries, public debt helps improve long-term growth with a very limited impact in the short term.

There is no evidence that public debt improves economic growth in low-income Arab countries in the short or long term.

For all groups, the Arab countries' public debt is inefficient regarding investment.

The Arab Monetary Fund Releases a Study on Climate Change and Economic Growth in Arab Countries

The Arab region is one of the regions most heavily impacted by worldwide climate changes.

The Arab Monetary Fund (AMF) has published an economic study titled "Climate Change and Economic Growth in Arab Countries”. This comprehensive research investigates the impact of climate change on the economic prosperity of twelve Arab countries from 2010 to 2019, using advanced econometric models to analyze data on surface temperature, carbon dioxide concentrations, land cover changes, and annual precipitation.

Key findings reveal that climate change hampers economic growth in the region, with carbon dioxide levels and land cover changes identified as major contributing factors. The study underscores the urgent need for Arab nations to adopt and implement robust policies and strategies to mitigate the adverse effects of climate change to ensure sustainable economic growth.

Subscribe to