The International Monetary Fund has warned that debt, unemployment and deficit rates will increase in the Arab region against the backdrop of measures to combat the emerging Coronavirus and the decline in oil prices, exacerbating the suffering of economies affected by decades of war.
According to the fund, almost all the countries of the Middle East and North Africa will inevitably lose hundreds of billions of dollars in revenue, while Arab countries are estimated at 323 billion dollars this year.
According to the IMF’s April Regional Economic Outlook report, the COVID-19 pandemic, and falling oil prices are causing major economic turmoil in the region, with a potentially long-term impact.
The fund had expected the MENA economy to shrink by 3.3% this year, due to the backdrop of anti-Corona virus measures and falling oil prices.
The fund believed that the economies of Arab countries, which have been riven by conflict for many years will lose together $323 billion, or 12% of their economy, including $259 billion in the Gulf oil states alone.
The debts of Arab governments will rise by 15% or $190 billion this year, to reach $1.46 trillion, at a time when the cost of borrowing increases due to tight financial conditions. The fiscal deficit in the Arab region is also expected to deteriorate from 2.8% of GDP in 2019 to 10% of GDP this year.
Source (CNBC Arabia Website, Edited)
