With Saudi Arabia announcing plans to raise $55bn through its privatisation programme, Gulf countries are stepping up efforts to stimulate private investment in public assets and projects, with a view to strengthening state finances, spurring diversification and driving their respective Covid-19 recoveries.
Despite the recent spike in cases, Trinidad and Tobago responded to the onset of the pandemic swiftly and comprehensively, not only through containment measures but also fiscal and monetary interventions.
Economic update | Report: How Kuwait balanced domestic priorities and support for developing economies during the pandemic
Kuwait entered the pandemic in a relatively resilient position thanks to strong fiscal buffers, favourable demographics and an advanced health care system that benefitted from sustained investment that was proportionally higher than many of its wealthy GCC peers.
Economic update | A global corporate tax rate: will it help or hinder developing nations’ Covid-19 recovery?
During last year’s US presidential campaign, Joe Biden promised to crack down on tax-evading multinationals, and he has now called for a global minimum corporate tax rate. However, some fear that President Biden’s plan may hinder developing economies’ Covid-19 recovery.
Most developing markets took a significant economic hit during the pandemic, while many traditional channels of lending have tightened. In this light, special drawing rights (SDRs) are emerging as an important tool available to governments to fund their Covid-19 responses and recoveries.
As a result of the economic fallout of Covid-19, emerging economies across the world are grappling with numerous challenges, including cash flow crises, the risk of prolonged recession and debt default. Many are looking towards development banks to help get their sustainable recoveries under way.