Arab Monetary Fund Publications: Research and Studies

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.

Arab countries are encouraged to strengthen their public debt management and provide a clear roadmap for public and private sectors to coordinate and set partnerships.