( CNN ) -- The turmoil that 's roiled Arab states from Tunisia to Yemen is also creating a headache for those entrusted with reviving economies hard hit by rising energy and food prices , growing public debt and the prospect of more expensive borrowing on the international markets . Since mid-January , credit rating agencies such as Moody 's have downgraded the sovereign debt of Tunisia , Jordan and Egypt . On Tuesday Moody 's changed the outlook on Jordan 's foreign currency bonds to negative from stable , citing `` fiscal and economic downside risks related to ongoing turmoil in the region following events in Tunisia and Egypt . '' Moody 's said that Jordanian protesters `` could use the regional uprisings as an opportunity to express their discontent about high unemployment and the lack of development for low-income groups . '' Standard & Poor 's , another major credit rating agency , made a similar move . Jordanian officials are not happy with the downgrade , arguing that their public finances are sound -- Jordan 's foreign currency reserves actually rose last year and stand at about $ 12 billion -- and that the economy may grow as much as 6 % in 2011 . Protests there have been largely peaceful and far smaller than in Egypt and Tunisia . But after pledging to cut the budget deficit , the government reversed course in January with a package of subsidies and salary increases amounting to some $ 600 million , to compensate for higher prices . International bond markets are wary that governments may try to `` buy their way '' out of trouble , in the words of one analyst . It is a potentially toxic cycle , according to regional economists . Egypt and Tunisia have already suffered a loss of tourism revenue in peak season , while record-high grain prices and a surge in the price of crude oil have fueled inflation . Jordan imports 90 per cent of its oil , and faces disruption to its gas supplies after an explosion at a pipeline in Egypt last week . Like Jordan , Egypt has opted to spend more on subsidies for the poor . The recent street protests , now in their third week , have led stores , businesses , the stock market and banks to close -- a further cost . Until the protests erupted , Egypt had a positive reputation in the international debt markets -- with attractive interest rates for investors , banks that had avoided high-risk investments , a manageable budget deficit and low overall sovereign debt . Like Jordan , it was working to cut its budget deficit . But markets abhor uncertainty and the government 's cost of borrowing has risen sharply since the protest movement erupted -- although it has fallen back slightly in recent days . Earlier this week , the Egyptian Central Bank intervened to support the pound against the dollar , spending precious foreign currency in the process . And before the Egyptian stock market closed , some $ 5 billion was wiped off the value of Egyptian stocks in just two days . In addition , government wages and pensions in Egypt have been increased 15 per cent . Credit strategists say any labor unrest -- especially at the Suez Canal where a strike began among service workers Wednesday -- would put Egypt 's finances under further pressure . Shipping has so far been unaffected by the labor action . Market commentators say that international investors are already avoiding Egyptian Treasury auctions -- another is due next week -- meaning local banks are expected to pick up the slack . One former Jordanian official told CNN that he hoped the country 's vulnerable economic state and its value to the United States as a reliable pro-Western ally would prompt greater financial support from Washington . Last year , foreign grants -- mainly from the United States and Saudi Arabia -- totaled more than $ 400 million . But there is pressure on the U.S. federal budget too .
Credit rating agencies have downgraded the debt of Tunisia , Jordan and Egypt . A potentially toxic economic cycle could hurt Arab economies , analysts say . Comment: