The economic effects of coronavirus on the Arab region

A recent study issued by ESCWA indicates that the Arab region will suffer from a set of economic effects as a result of the Coronavirus pandemic. Among them are the following:

1- The total losses of the Arab region during the period exceeded $ 42 billion

2 The total losses in the oil sector from the beginning of January to mid-March amounted to 11 billion dollars.

3- During the above period, companies in the Arab region incurred huge losses in market capital amounting to $ 420 billion, which is equivalent to 8% of the total wealth in the Arab region.

4- It is expected that the countries of the region will lose no less than 1.7 total jobs, mostly in the services sector, due to the effect of social divergence.

In view of these economic problems, economic policymakers must take the following measures:

A- Take coordinated measures at the micro (companies) level and at the level of macroeconomic policies

B - Enhancing liquidity levels and relieving financial pressures.

C - Support small and medium-sized companies by offering tax exemptions and extending the debt deadlines.

D- Developing social welfare systems for the benefit of economically marginalized groups

E - Establishing a regional fund to deal with environmental and health disasters in which all countries of the region contribute.