UAE stable while most emerging markets are set to incur revenue losses: Moody’s

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CountryUAE Top Picks

Other countries are not in a privileged state as the UAE as majority of emerging markets (EMs) are likely to record budget deficits in 2020 and face constraints in cutting spending amid the pandemic, amplifying the importance of revenue generation, said the report, adding that EM fiscal revenue will stay below pre-crisis levels amid a slow and halting global recovery.On average, EM governments will lose revenue worth 2.1 percentage points (pps) of GDP in 2020, above the 1.0 pp loss in Advanced Economies (AEs), it said. “Government revenue in EMs is more vulnerable to this crisis because it tends to be more reliant on taxes on international trade (eight percent of total revenue on average in 2018 in EMs, compared to less than one percent in AEs), which has collapsed more...