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
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.