Governments across MENA have taken steps to re-open economies over the past month and, after a sharp downturn in April and May, daily indicators suggest activity has started to recover. That said, activity remains well below pre-virus levels. Recoveries in economies with large tourism sectors, such as Dubai and those in North Africa, are likely to lag behind. And austerity will act as a major headwind to the Gulf economies. Balance of payments strains in the likes of Egypt, Tunisia, and Morocco have receded thanks to financial assistance from the IMF. Lebanon’s problems, however, appear to be deepening and there is a growing risk of a disorderly outcome.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services