HomeSocietyESCWA: Arab countries suffer from the highest unemployment rate in 2022

ESCWA: Arab countries suffer from the highest unemployment rate in 2022

As the post-Covid-19 economic repercussions continue to linger around the world, in addition to the impact of the Russian-Ukrainian conflict, Arab countries have been the most affected recording the highest unemployment rate in 2022 and a significant increase in poverty.

According to a study on economic and social developments in the Arab region conducted by the United Nations Economic and Social Commission for Western Asia (ESCWA), which analyzes the latest social and economic trends, the unemployment rate in Arab countries reached 12% in 2022, the highest in the world. On the other hand, with the recovery of the economic sector, this rate is expected to fall this year to stand at 11.7%.

The report notably revealed that poverty has increased affecting 130 million people, more than a third of the Arab population. Unlike the unemployment rate, this phenomenon will continue to rise while affecting 36% of this population by 2024.

Furthermore, the document estimates that Arab countries will experience 3.4% growth in 2023, despite the impact of the pandemic and the conflict. Inflation will also decline over these two years. The rate should drop from 14%, recorded in 2022, to 8% in 2023, then to 4.5% in 2024.

For Ahmed Moummi, lead author of the study, the war in Ukraine has generated significant differences between countries, since the impact of this conflict has not been the same in all Arab countries. In this sense, the author gives the example of the countries belonging to the Gulf Cooperation Council and of the oil-exporting States, which have been able to benefit from the inflation of the prices of energy products.

However, countries dependent on oil imports are facing many socio-economic challenges, namely fuel price inflation, food insecurity, declining international aid and weak revenues from economic sectors such as than tourism.

The current situation offers Arab oil-exporting countries an opportunity to diversify their economies away from the energy sector by accumulating reserves and investing in projects that generate inclusive growth and sustainable development. “said Moummi.

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