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Fitch: Unemployment has risen in three Arab countries, including Iraq 2022-01-06 01:20 Shafaq News/ The credit rating agency, Fitch, reported that three Arab countries, including Iraq, experienced an increase in unemployment with the advent of the Covid-19 pandemic, which worsened the situation in them. Fitch said; Youth unemployment and the lack of economic opportunities for them with a growing population represents a major policy challenge and a threat to political and social stability in most countries in the Middle East and North Africa. She pointed to the growth of demographic challenges since the outbreak of the events of the Arab Spring (2010-2011), which partly reflects the grievances of young people who are deprived of their rights, indicating that with the advent of the Covid-19 pandemic, conditions have worsened, and the already high unemployment rates have increased in Iraq, Jordan and Morocco. Fitch added in a report seen by Shafak News Agency; The growth of real GDP per capita was weak in all countries of the region except for Egypt and Morocco, and labor force participation rates declined, in a trend that preceded the spread of Corona in Egypt, Morocco and Jordan. It showed that demographics has a multi-faceted impact on sovereign ratings, as high population growth rates promote growth and thus exert a downward force on government debt dynamics, as is the case in Egypt. It leads to high unemployment rates and stagnant living standards, which increases the risks of social and political instability. She explained that the need to contain social stability risks often leads to increased government spending on public sector employment and provision of subsidies, which leads to wider deficits and a tighter spending structure, noting that this approach succeeded in containing youth unemployment in Tunisia to some extent over the decade. The past, but culminated in debt sustainability and politically intractable financing challenges.
