Russia-Ukraine war could fuel economic woes in non-oil MENA region: S&P Global Ratings

  • 5/31/2022
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Cairo: A protracted Russia-Ukraine conflict could lead to higher income inequality and cause socio-political discontent in Egypt, Jordan, Lebanon, Morocco, and Tunisia, according to S&P Global Ratings. An economic report released by the firm warned these countries are highly dependent on wheat and other cereal supplies from Russia and Ukraine. In addition, high youth unemployment in these countries might serve as another factor leading to social discontent, warned Valerijs Rezvijs, economist at S&P. Fiscal measures to mitigate the harm to consumers and avoid social tension will put pressure on post-pandemic fiscal consolidation, Rezvijs said. Russia and Ukraine together account for over 25 percent of global wheat exports, and nearly 15 percent of corn. Russia and Belarus are also big players in the fertilizers market, the press release pointed out.

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