Levant: Structural woes accentuated
In this week’s paper, we take a look at Jordan and Lebanon’s fiscal and structural updates, focusing on:
- Jordan’s budget and overall fiscal position, as the Kingdom has set a larger budget than in 2020, with a 6.3% YoY increase.
- Key downside risks, including debt sustainability and rising unemployment, which threaten fiscal consolidation in Jordan.
- Lebanon’s battered economy, made worse by political deadlock and with the Lebanese pound plunging to a new low.
- The delay in forming a new government in Lebanon, which is deferring IMF help and further decreasing the country’s chances of securing overseas funding.
Florence Eid-Oakden, Ph.D, Chief Economist
Ghalia Al Bajali, Leila Lajevardi, Analysts
The Regional Views series are thematic papers aimed at identifying and analysing factors behind medium to long-term economic trends shaping the region. Our analysis draws conclusions that help businesses and investors get ahead of the curve. As a firm staffed by Middle Easterners, we focus on insight rather than standard analysis.
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