Economic trouble in five non-oil Arab countries

Abstract

Five major non-oil Arab countries – Egypt, Jordan, Lebanon, Morocco and Tunisia – are experiencing serious economic problems due to the COVID-19 pandemic and the disruption in global food and energy markets caused by Russia’s invasion of Ukraine. These events are causing existing macroeconomic imbalances to worsen alongside rising unemployment and inflation. Governments are attempting to raise revenue by increasing indirect taxes – which have a more significant effect on people who are poor or have moderate incomes – while cutting public services and employment levels. These factors, combined with relatively high levels of political repression in place since the 2011 Arab Spring uprisings, pose a risk to political stability in the region. Show more