MADRID, May 24th. (EUROPEAN PRESS) –

The Club of Spanish Exporters and Investors has stated in a statement on Wednesday that according to its latest analysis, Pakistan, Egypt and Colombia are the developing countries with the “most critical” situation. Apart from that, he also wanted to highlight the cases of Algeria and Morocco, because of their impact on Spain and Europe.

According to data in the note, Morocco faces a debt maturity in 2023 equivalent to over 10% of GDP and Algeria over 6%. The combination of the depreciation of their currencies, high food prices and deteriorating public accounts in Morocco and Algeria may have an “important geopolitical impact” even internally within the EU.

The report on which this analysis is based has been prepared by professor of Fundamentals of Economic Analysis, Ángel Rodríguez García-Brazales, which shows that, although more than 53% of Spanish investment abroad is concentrated in the EU, Great Britain and the United States, two important developing countries such as Mexico and Brazil together represent over 15% of the total.

FEAR FOR THE ECONOMY TO APPEAR

The Exporters’ Club has stressed its fear of an “even more severe” financial downturn some developing countries may face in 2023, even “to the brink of ‘default'”.

Experts caution that most of these regions are facing debt maturities this year so they will have to refinance at much higher rates, which will improve debt servicing in the coming months and years.

The report suggests that monetary policy tightening can trigger a public or financial debt crisis in heavily indebted countries.

In addition, Rodríguez has explained that if the central bank continues to raise interest rates, debt servicing will increase, which could “exacerbate investor fears and lead to a big sell-off of public debt.”

IMF “VERY LOW” ATTITUDE

From the Exporters’ Club they saw a “very stingy” attitude on the part of the International Monetary Fund (IMF) in the number of aid programs.

They have also stated that they consider “decisive action by Spain’s economic diplomacy to induce the IMF and these countries to reach an economically and politically viable agreement to stabilize their economies in the short and medium term” is necessary.