The strong profitability capacity of banks in the Gulf Cooperation Council countries will help them overcome the shock related to the Corona virus and the decline in oil prices. Rated banks can absorb up to $36 billion before moving into the red. That is, approximately three times the normal loss rates of these banks. Looking at provisions, Kuwaiti banks have the strongest ability to withstand the increase in the cost of risk, while banks in Bahrain, Oman and the UAE are the most vulnerable.
New guidance report from the International Labor Organization Lockdown and containment measures risk increasing relative poverty levels among workers in the informal economy by up to 56 percentage points in low-income countries, 52 points in high-income countries, and 21 points in upper-middle-income countries.
Just as the Corona virus spreads human suffering throughout the world, it also spreads economic suffering. It is not only a medically contagious virus, but it is economically contagious as well. On March 4, 2020, the European Commission said that Italy and France were at risk of sliding into recession. The International Monetary Fund said it believes that the global economy is heading down “more dangerous” paths.