IMF: debts of Arab countries more than 90% of its GDP
The International Monetary Fund warned on Saturday that public debt has been rising rapidly in many Arab countries since the global financial crisis in 2008, due to the continued rise in the budget deficit.
"Unfortunately, the region has not yet fully recovered from the global financial crisis and other major economic upheavals of the last decade," IMF Managing Director Christine Lagarde said.
"Among oil-importing countries, economic growth has improved, but still below pre-crisis levels."
The public debt of Arab oil importing countries rose from 64% of GDP in 2008 to 85% in 2018.
She noted that public debt in about half of these countries currently exceeds 90% of GDP.
The public debt in oil-exporting countries, including the six member states of the Gulf Cooperation Council (GCC), rose from 13 percent to 33 percent of GDP driven by the collapse of oil prices five years ago, she said.
She stressed that the oil-exporting countries did not achieve a full recovery from the shock oil prices faced in 2014.
"We continue to achieve modest growth, but the outlook is still uncertain," she said.
Lagarde called on oil-exporting countries to use renewable energy in the coming decades in line with the Paris Convention on Climate Change, which provides for the reduction of emissions of the environment.