The current growth indicators are primarily due to the huge infusion of government funds and increased spending in the military sectors and defense industries, in addition to foreign financial aid that contributes to supplementing public budgets. On the other hand, consumer goods and services are witnessing increasing pressures resulting from high inflation rates, rising bank interest rates, and the growing volume of outstanding debts.
Experts and economists believe that excessive reliance on war spending has transformed the economic models in both countries into “war economies” that focus resources toward the military effort, which has led to paralysis in some civilian and non-military sectors, and deprived the ordinary citizen of reaping the benefits of this nominal growth in light of the decline in purchasing power and the rise in the costs of daily living.
