The World Bank warns: the public debt of the countries of the Middle East and North Africa is ballooning due to Corona

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Afrasianet - The World Bank has warned that the public debt of the countries of the Middle East and North Africa will inflate and represent 54% of their GDP this year, compared to 46% in 2019, due to the repercussions of the Corona virus.

In a report, the World Bank indicated that the reason for the "significant increase in debt" that the countries of the Middle East and North Africa have witnessed is "borrowing heavily to finance basic health care costs and social protection measures," noting that "the size of the debt of oil importing countries in the region

It will constitute a percentage that could reach 93% of its GDP in 2021. " The World Bank confirmed its recommendations for spending to address the health crisis (the Corona pandemic), considering that "continuing spending and continuing to borrow, will remain an urgent necessity at the present time.

" "Countries in the MENA region will have no choice but to continue spending on health care and social protection as long as the pandemic continues," he said. On the other hand, the World Bank warned that

“in the post-Corona pandemic world, it is expected that most countries in the MENA region will end up with debt service bills that will require resources that could have been used for economic development.”

This international financial institution considered that “it is necessary to consider how to reduce the costs of excessive indebtedness in the medium term,” calling on countries to “be transparent in their spending and borrowing in relation to the Coronavirus.”

It should be noted that this region, which includes about 20 countries, witnessed a contraction in its economy by 3.8% last year, as the World Bank estimated the cumulative decline in activity in the region by the end of 2021 by about $ 227 billion, while it expected a partial recovery this year. " There should be a fair distribution of coronavirus vaccines. "

 

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