The Oil Industry Is Impacting COVID Relief for the Middle East and Central Asia
Countries on x-axis as follows: Bahrain, Kyrgyzstan, Iran, Azerbaijan, Georgia, Morocco, Mauritania, Tajikistan, Uzbekistan, Djibouti, Saudi Arabia, Pakistan, Kazakhstan, Afghanistan, United Arab Emirates, Egypt, Tunisia, Armenia, Kuwait, Sudan, West Bank, Algeria, Jordan, Iraq, Qatar, Lebanon, Oman, Turkmenistan, Yemen
Countries in the Middle East and Central Asia have received the smallest COVID-19 economic relief packages compared to other regions across the world. Average fiscal support in the region is above 2% of GDP and has prioritized health care and vulnerable households and businesses, according to a July 2020 report from the International Monetary Fund.
The relatively lower level of support — the global average hovers around 4% of GDP — is due to “constrained policy space among oil importers and existing sizable government support in the economy among most oil exporters.”
Many countries in the region were impacted by severe oil price fluctuations earlier this year, and although the deal made by OPEC+ helped stabilize the industry, prices are still extremely low. The region’s GDP is now projected to be -4.7% for 2020, the report says, making continued direct fiscal support an essential element of recovery.