The Economic and Social Commission of the UN for Western Asia (ESCWA, in English) this Wednesday reduced the growth forecasts of the Arab world for the current year to 3.3%, due to the effects derived from the war in Gaza or the conflict in Sudan.
According to the Study of Economic and Social Development in the Arab Region published this Wednesday by the ESCWAthe regional Gross Domestic Product (GDP) is expected to be 3.3% this year, compared to the 3.6% that had been previously forecast based on the stabilization of oil prices.
The report also warns of an increase in the poverty rate in low-income countries, where the figure went from 56% in 2019 to 63% last year, a trend that was also followed by nations affected by armed conflicts, with 50%. % in 2023 compared to the average of 45% recorded four years earlier.
The Gaza Strip represents one of the most flagrant cases, since the war between Israel and the Palestinian Islamist movement Hamas threatens to plunge its entire population of more than two million people into poverty, also making a dent in neighboring Lebanon.
More positive are the forecasts in relation to regional inflation, which the United Nations commission expects to drop to 7.5% this year after reaching 12.3% in 2023, an increase in prices encouraged by the difficulties in importing grain from Ukraine in the midst of the war with Russia. .
Although inflation is expected to decline further by 2025, to 6%, ESCWA warned that price increases continue to represent a “serious concern” in the Arab world.
Source: Gestion
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