"The COVID-19 pandemic and the plunge in oil prices are causing significant economic turmoil in the region ... the impact could be long lasting," the International Monetary Fund said in its Regional Economic Outlook for April. "While there is considerable uncertainty around the depth and duration of the crisis, this pandemic will compound the region's unemployment problem and worsen the already high public and external debt. "Governments could consider reorienting spending priorities, for example by reducing or delaying non-essential expenditures, or seeking external financing support or aid," it said. "A mishandling of the outbreak could elevate distrust in local governments, sowing seeds for further social unrest and adding to regional uncertainty. "Arab countries ravaged by years of bloody conflicts, including Syria, Yemen, Iraq and Libya, have already seen their economies battered, leading to widespread poverty.The economies of these countries are expected to be hit particularly hard by the pandemic, the IMF said.

Source: Economic Times April 15, 2020 10:18 UTC