#Sharjah economic growth to rebound by 4%, but deficit to remain high: S&P | ZAWYA MENA Edition

Sharjah economic growth to rebound by 4%, but deficit to remain high: S&P | ZAWYA MENA Edition

S&P Global Ratings has affirmed its “BBB-“ long-term sovereign credit rating with a stable outlook for Sharjah.

The rating is based on S&P’s expectation that despite the emirate’s large fiscal deficits, the government debt will remain below 60 percent of the gross domestic product (GDP) through 2024.

The local economy fell sharply by about 10 percent in real terms last year, while government revenues also plunged. This has resulted in elevated fiscal deficits.

In a report on Sunday, S&P said it has also assigned a “A-3” short-term rating to Sharjah.

It expects the emirate’s economic growth to rebound by four percent in 2021, and growth to average around two percent a year from 2022 to 2024.