COVID-19 dwindles fiscal outlook for MEA sovereigns: Fitch | ZAWYA MENA Edition:
Fiscal prospects for almost all sovereigns in the Middle East and Africa (MEA) have deteriorated sharply due to the COVID-19 pandemic, a Fitch report revealed.
“This mainly reflects the impact of a sharp decline in oil prices on public finances of oil exporters, and the effect of domestic and international containment measures in curtailing economic activity and thus fiscal revenues,” the global ratings agency said in its report.
The ratings agency expects most of the region to return to economic growth in 2021 and general government (GG) deficits to narrow consequently. Deficits will however remain wide in many countries, and debt will rise in most MEA sovereigns through 2021.
According to the ratings agency, buffers to absorb the shock have been limited in several cases, partly as a result of the weakening of public finances prior to the outbreak of the pandemic.
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