Standard & Poor's Global Credit rating agency predicted that the Gulf countries’ government debt would rise by a record $100 billion this year, in light of the growing funding requirements due to the Coronavirus crisis and the drop in oil prices.
The agency estimates that the central governments of the Gulf Cooperation Council countries record a combined deficit of about $180 billion, expecting the budgets of the governments of the Gulf Cooperation Council to deteriorate until the year 2023.
The International Monetary Fund once again lowered growth forecasts in the Middle East and North Africa, to fall to their lowest levels in 50 years, against the backdrop of the continued repercussions of lower oil prices and the spread of the Coronavirus. The Fund warned that the economic crisis in the region, which is beset by crises, will witness an increase in poverty and unemployment rates, which could fuel social unrest, increase budget deficits and public debt. The fund expects that the economies of the Middle East and North Africa region will contract by 5.7% this year, down from its expectations in April, while the economies of countries in conflict may contract by 13%.
Source (The New Arab Newspaper, Edited)
