Recession in the Gulf spells trouble for many developing and emerging economies
News from 2020-05-18 / KfW Research
The Middle East is currently being hit by a twin crisis, the coronavirus pandemic and collapsing oil prices. The key sectors behind oil – retail, hotels, transport and tourism – have been hit particularly hard. As a result, the countries also have less money to invest. The Gulf region is one of the largest employers for workers from developing and emerging economies. The crisis in the Gulf could lead to a 20% drop in remittances. This will hit many recipient countries hard, as it will lead to a decline in income and foreign currency.