Liquidity shortage and debt: Obstacles to recovery in the Arab region - ESCWA

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Liquidity shortage and debt: Obstacles to recovery in the Arab region

ESCWA Publication: E/ESCWA/CL3.SEP/2021/POLICY BRIEF.3


Publication Type: Policy briefs

Cluster: Shared Economic Prosperity

Keywords: Covid-19, Debt, Debt relief, Debt management, Debt restructuring, Liquidity

Liquidity shortage and debt: Obstacles to recovery in the Arab region

October 2021

COVID-19 has pushed gross public debt in the Arab region to a historic high of $1.4 trillion, putting some of the middle-income countries (MICs) and Gulf Cooperation Council (GCC) countries at high risk of debt vulnerability.

The 2010s have witnessed an unprecedented rise in public debt worldwide as well as in the Arab region. In 2020, global public debt reached a staggering 100 per cent of global gross domestic product (GDP), compared to 65 per cent of global GDP in 2008. In the Arab region, public debt reached 60 per cent of GDP in 2020, up from 25 per cent of GDP in 2008.

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