Giancarlo Perasso, Lead Economist CEEMA, Global Macroeconomic Research, PGIM Fixed Income, shares insights from a recent trip to the Middle East. In this white paper, PGIM Fixed Income discusses:
- Lebanon: the desire for improvement has seemingly reached critical mass -- nearly every official we spoke to indicated that it was time to address the fiscal situation and undertake structural reforms.
- Jordan: regional allies and Western-oriented institutions remain anxious to keep Jordan within the fold and will likely continue supporting Amman at the cost of material fundamental improvements.
- Iraq: current oil production and exports are probably enough to fund the salaries of 4.5 million public employees, likely making Iraq’s public sector wage bill of 17% of GDP the highest in the world.