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

Resources

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

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


Country: Arab region

Publication Type: Policy briefs

Cluster: Shared Economic Prosperity

Focus Area: Debt and fiscal policy

Initiatives: Financial & macroeconomic statistics for National accounts, Debt Optimization to Enhance Fiscal Space

SDGs: Goal 8: Decent Work and Economic Growth

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.

Related content
Debt and fiscal policy
arrow-up icon
Feedback