MENA countries post sharp declines in export; sovereigns face borrowing pressure | ZAWYA MENA Edition:
Countries in the MENA region are experiencing some of the sharpest contractions in exports, and some sovereigns will face severe borrowing pressure in early 2021 due to economic shocks due to COVID-19, says Moody’s.
Investment-grade emerging market sovereign bond issuance climbed above $107 billion by the end of June, 53 percent higher than in the first six months of 2019, according to data from the global ratings agency.
It said there had been a sharp increase in government borrowing needs due to the pandemic, and countries including GCC states, as well as Egypt, Jordan and Lebanon, will see the sharpest contractions in exports.
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.
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