IMF: MENA Oil Exporters to Lose Around $224 Billion in Revenues

IMF: MENA Oil Exporters to Lose Around $224 Billion in Revenues

"Fiscal revenues in the region have declined sharply due to lockdown and oil price shock. For instance, oil exporters are expected to experience a $224 billion shortfall in revenues this year. Some countries will incur the highest deficit in 20 years and, in turn, high deficit will raise burden and erode fiscal space in some countries. The pandemic has heightened corporate default rate risk and credit risk for banks in the region with potential losses that could amount to five percent of GDP," said Jihad Azour, director of the IMF's Middle East and Central Asia Department.

He said with uncertainty surrounding the pandemic's trajectory and scale of the challenges it has created, countries in the region continue to face a difficult economic environment.

The IMF believes oil exporters in the Middle East,