UN: Arab World Could Lose 1.7 Million Jobs in 2020 Due to Pandemic

In a note on the assessment of the cost of the pandemic in the region, the commission specifies that, faced with this situation, the unemployment rate should also increase by 1.2 percentage points in 2020 against a decrease of at least 42 billion dollars in the cumulative Gross Domestic Product (GDP) of the Arab countries.

The losses are likely to be more pronounced in the event of a further decline in world oil prices, or if the current price level is maintained for a longer period.

According to the Commission, the outbreak of the new coronavirus has led to a significant drop in oil prices, having "cost the region nearly $11 billion [...] between January and mid-March 2020, following the collapse of oil prices, this Wednesday. Worse, companies in the region have lost $420 billion in market capitalization, or about 8% of the overall market capitalization, over the same period.

For her part, ESCWA Executive Secretary Rola Dashti has called for swift action to initiate the recovery, while the organization recommends that governments in the region take measures aimed at strengthening social protection and supporting businesses through tax exemptions, wage subsidies and debt repayment deferrals.