The Arab Monetary Fund published a study, “Economic Productivity in Arab Countries: Status and Challenges”, assessing how productivity has supported economic growth in Arab economies over the past two decades and what policies have influenced outcomes. The study finds Arab countries have favourable fundamentals to lift productivity, particularly through capital accumulation and labour availability. It links higher productivity to disciplined monetary policy and improvements in human development indicators, while warning that rising government expenditure and public debt can hinder productivity gains. It calls for effective fiscal frameworks, macroeconomic stability and more efficient public spending to strengthen productivity and competitiveness.
Arab Monetary Fund 2025-12-29
Arab Monetary Fund releases study on economic productivity trends and policy challenges in Arab countries
The Arab Monetary Fund's study, "Economic Productivity in Arab Countries: Status and Challenges," highlights that productivity in Arab economies has been supported by capital accumulation and labour availability, but warns that rising government expenditure and public debt could impede gains. It recommends effective fiscal frameworks, macroeconomic stability, and efficient public spending to enhance productivity and competitiveness.