Skip to content
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

NEW VIRUS SURGE COULD PUSH EMERGING ECONOMIES INTO DEBT CRISIS

For the many economies that depend on tourism, remittances from relatives abroad, and exporting raw materials, a new global wave of the COVID virus could leave them even less able to service their already burdensome foreign debt, the IMF has warned.
These countries typically must import a range of necessities. The loss of income from a continuing weak global economy, coupled with the cost of caring for their own COVID victims, could cost many of the nations as much as 2 percent of GDP, the fund said.
Oil exporters such as Norway, Russia, and Saudi Arabia could lose up to 3 percent of GDP in foreign trade; the absence of tourists in nations such as Costa Rica, Morocco, and Portugal could wipe out 2 percent of GDP.
Egypt, Guatemala, Pakistan, and other countries relying on citizens sending money home from abroad also would be hit hard, the IMF said.
The new imbalances could push many precarious economies to default on foreign debt or beg help from the IMF and World Bank, the fund emphasized.
Canada, the U.K., and U.S. have outsized trade deficits, the fund noted; China and the Eurozone, particularly Germany, have large surpluses.
TREND FORECAST: We forecast sharp increases of government control among nations that will sink deeper into financial distress, which will in turn ignite civil wars, which will in turn escalate into regional wars.
 

Comments are closed.