Report: Economies of Arab Oil Exporters to Shrink by 4.7 Percent

Report: Economies of Arab Oil Exporters to Shrink by 4.7 Percent

The economies of Arab oil exporters are expected to contract by 4.7 per cent, while the more diversified Arab economies are expected to shrink by 2pc in 2020, says a new report.

The 12th edition of the Arab Economic Outlook Report issued yesterday by the Arab Monetary Fund (AMF) expects the Covid-19 pandemic to have a negative impact on Arab economies, especially as sectors affected by full or partial lockdown contribute about 70pc of the Arab GDP.

The SMEs sector, which contributes about 45pc of GDP and one-third of official employment, has been severely affected by the current crisis, the report says.

In addition, Arab oil exporters are more likely to bear nearly half of the burden of the oil supply cuts in 2020 and 2021 approved by the OPEC+ agreement, which will