Arab’s Economy Lost 8% of Its Wealth Due to COVID-19

The head of the Arab Businessmen Union, Hamdi Al-Tabbaa, estimated that the losses of the Arab economy due to the Corona pandemic would amount to approximately $ 323 billion. Al-Tabbaa based his estimates, based on a recent report by the International Monetary Fund, which also predicted a 3.3% contraction in the economies of the Middle East and North Africa region due to fighting the Corona virus and falling oil prices.

Al- Tabbaa believes that the Arab countries, whether oil exporting or importing, have been affected negatively and affected by damage and losses that were associated with the repercussions of the new Corona virus amounts to about 12% of the size of their economy.

The head of the Amman-based federation confirmed that expectations indicate that the debts of Arab governments will increase 190 billion dollars during the current year 2020 to reach 1.46 trillion dollars, which indicates the possibility of leading to deterioration from the fiscal deficit in the Arab region from 2.8% of GDP last year 2019 to 10% this year 2020.

Al-Tabbaa revealed that companies in the Arab region suffered heavy losses during the first quarter of this year, amounting to $ 420 billion, which is equivalent to 8 percent of the region’s total wealth.

Regarding what is required in the Arab world to overcome the challenges of the Corona Regulation, Al-Tabbaa called on Arab countries to take into consideration economic theorists and coordinated and homogeneous measures at the micro and macro levels of Arab economies in the short, medium and long term.