MENA countries post sharp declines in export; sovereigns face borrowing pressure

  • Date: 15-Sep-2020
  • Source: Zawya
  • Sector:Economy
  • Country:GCC
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MENA countries post sharp declines in export; sovereigns face borrowing pressure

The impact of COVID-19 has widened existing fiscal and external imbalances in emerging and frontier markets, the service said in a new research report.Moody's Sovereigns Global report said COVID-19 is exacerbating liquidity pressures which have caused severe stress or default for some sovereigns."We expect double-digit contractions in exports for emerging and frontier market economies in most regions in 2020,“ said the report."The sharpest contraction will be in the Middle East and North Africa, among Gulf Cooperation Council (GCC) oil exporters, the region's tourism-reliant economies including Egypt (B2 stable), and those which already had high and rising macroeconomic imbalances and pressures heading into the crisis, including Jordan (B1 stable) and Lebanon (C stable).“Declining government revenueThere have been sharp declines in government revenue, Moody's said, and, significant increases in spending to cushion