The number of poor people in Arab countries will rise to 126 million in 2023 due to the war in Ukraine, according to a recent report issued by the United Nations Economic and Social Commission for Western Asia (ESCWA) on Thursday.
“The war in Ukraine has serious social and economic repercussions in the Arab region, especially in countries with low- and middle-income,” said the report.
The study, entitled “The Effects of the War in Ukraine on the Arab Region,” noted that “Arab economies are likely to lose about $11 billion in 2022, and $16.9 billion in 2023.”
“There is an urgent need to maintain or increase, in certain cases, social protection measures, particularly those providing food and food subsidies to the poorest and most vulnerable households,” affirmed ESCWA Executive Secretary, Rola Dashti.
On the energy level, Arab energy-importing countries are witnessing the twin impacts of high prices of energy and imported goods, which threaten energy security, damage the balance of trade and squeeze government budgets.
“Some countries have raised energy prices, such as Morocco in which prices of diesel soared 15%, and gasoline by 33%, while Lebanon raised the prices of gasoline by 4% and diesel by 13% in the week of 21 to 25 March 2022,” highlighted the report.
The war in Ukraine is therefore a major blow to the global economy that will hurt growth as well as raise prices and is likely stifling the world’s economic recovery from the COVID-19 pandemic.
“Just as COVID-19 accelerated digital transformation, the war in Ukraine will trigger a supply-chain transformation, albeit at a slower pace, where old economic alliances and old trading routes will be reconfigured. This situation provides scope for enhancing intra-Arab regional trade,” noted the report.
The report’s conclusions further recommended exploring alternative sources for food imports impacted by the war, and reinforce consumer protection measures to prevent unjustified food price increases.
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