The outlook for sovereign creditworthiness in the Levant and North Africa region is negative over the next 12-18 months due to a weak economic recovery and growing social discontent, the ratings agency said in a note on Tuesday. Moody's Investor Service expects 2.9 percent growth across the Levant and North Africa region in 2022, down from estimated 3.4 percent growth in 2021. "A subdued and uneven economic recovery across the Levant and North Africa region, entrenched governance challenges and heightened social pressures will delay economic reform efforts and constrain policy flexibility," Mickaël Gondrand, an analyst at Moody's, said in the report. High debt levels will constrain the region's capacity to absorb future shocks and leave sovereigns vulnerable to potential shifts in global financing conditions. (Writing by Brinda Darasha; editing by Seban Scaria)brinda.darasha@refinitiv.comDisclaimer: This article is provided for informational purposes only.

Source: The North Africa Journal November 16, 2021 09:04 UTC