World Bank: COVID-19 Inflates   Public Debt in Middle East, North Africa

The World Bank warns that the public debts of countries in the Middle East and North Africa will inflate to become 54% of Gross Domestic Product (GDP) this year compared to 46% in 2019.

Experts of the bank linked those negative results to the percussions of Coronavirus (known also as COVID-19).

The WB has released a statement that says that the inflation in the public debts in the countries mentioned above due to unrestricted borrowing to finance the basic health care and measurements of social protection.

The statement sheds light on the debts of the importing-oil in the region where the public debts up to 93% of GDP in 2021.

Experts of the World Bank recommend continuing in expenditure and borrowing as an inevitable approach to cope with the COVID-19.

They stressed that the countries of the Middle East and North Africa have no other options than borrowing to handle the crisis of COVID-19.

On the other hand, the World Bank warns that in the post-Corona era, it is expected that cost of serving the public debts in the countries of North Africa and the Middle East will face moribund consequences so they can’t achieve positive growth.

The underdeveloped countries must mull over another method to alleviate the burden of the public debt in the medium-range.

The international financial institution urges those countries to adhere to more transparency when they borrow and expense to fund programs related to COVID-19.

The Middle East and North Africa region comprises twenty countries that suffered from recession by 3.8% last year.

The World Bank estimated that these countries will lose $ 227 billion until the end of the current year because of diminishing in all economic activities.

It forecasts a partial recovery in the region this year if the anti-Corona vaccines will be distributed in just ways.