IMF warns on rising debt in COVID-hit Middle East, Central Asia

Thirty countries in the regions saw economic rebound, but outlook remains uncertain because of the pandemic.

The International Monetary Fund (IMF) has said countries in the Middle East and Central Asia need to curb their financing requirements, as a surge in government debt, exacerbated by the coronavirus pandemic, threatens recovery prospects. The region, which includes almost 30 countries from Mauritania to Kazakhstan, saw an economic rebound in the third quarter as countries relaxed measures to contain the new coronavirus. But the outlook remains highly uncertain and recovery paths will diverge depending on the speed of vaccinations, reliance on heavily affected sectors, such as tourism, and countries’ fiscal policy.