Debt Optimization to Enhance Fiscal Space
Optimizing debt sustainability strategies for financing the Sustainable Development Goals
2022 – Ongoing
ESCWA supports member States’ efforts to implement macroeconomic policies towards inclusive growth and sustainable prosperity.
The Arab region’s need for government spending is increasing, but government revenues are not rising in parallel. Governments are therefore resorting to borrowing to finance their spending needs. Consequently, government debt is rising to unsustainable levels because of inefficient public finance management and the lack of a prudent fiscal policy response to public debt, thus exacerbating the debt service burden, stressing the already limited fiscal space, and impeding budgeting towards social development priorities.
Arab Governments’ ability to allocate their budgets to promote economic and social development varies significantly between countries. The ability to fund social development priorities in a manner that is macro-fiscally sustainable has become a pressing challenge, particularly when fiscal space is constrained. As such, the ESCWA Social Expenditure Monitor is a crucial tool for Arab Governments to improve monitoring and allocative efficiency of public expenditures for inclusive and sustainable development.
ESCWA also produces the Survey of Economic and Social Development in the Arab Region, an annual flagship publication that feature the results of modelling and forecasting research done by ESCWA. The survey looks at the region’s socioeconomic development assets, opportunities and constraints, and provides analysis on the economic outlook and forecasts for the region and individual countries.