Moody's credit rating agency expects that Kuwait will record the highest decline in revenue in emerging markets relative to GDP, by 18 percent during the current year, indicating that this decrease in revenues for exporting countries in these markets comes due to the significant drop in the demand for oil and its prices, and the continuation of such countries in heavy dependence on the revenues coming from this sector.
The agency indicated that revenue fluctuations are a pattern used by oil-exporting countries historically, which is closely related to the classification decisions they take, indicating that both Kuwait and Iraq will witness the largest sharp deterioration in the financial balance by 23.4 and 20.8 percent, respectively, affecting the deficit to reach 37.7 and 21.6 percent of GDP.
Moody's revealed that the Corona crisis will lead to long-term losses in revenues for emerging market countries, indicating that the ability of the governments of these countries to implement and implement effective measures to raise the level of revenue in response to this crisis will be an important credit factor over the next few years, due to significant spending pressures for these countries and the small recovery in the global economy is expected to take place over the next year.
Source (Al-Rai Newspaper-Kuwait, Edited)
