British pound climbs as government makes U-turn on tax cut plan    Egypt's net foreign assets decline again to reach $925 million in August    Turkey's inflation jumps to 83% highest level in nearly in 24 years    Egypt's FM heads to Congo Today to attend PRECOP27 conference    King Charles III won't attend COP27 in Egypt, following PM Truss advice    Swedish coastguard says: Fourth leak discovered on Nord Stream pipelines    Egyptian gecko invades Israel    Egypt welcomes back Russian flights on 1st October    Egypt launches 200 Years of Continuing Science tourism campaign    Egypt, UAE partner on sustainable waste management in Sharm el-Sheikh ahead of COP27    QNB Group names TikToker Khaby Lame official FIFA World Cup Qatar 2022 brand ambassador    Three possible scenarios as Egypt's central bank governor resigns – MP    Adele is living a love story, wants to be a homemaker    In Photos: Egypt swears in 13 new ministers after major Cabinet reshuffle    Egypt's Sisi names 13 ministers in Cabinet reshuffle    Spain: prosecutor seeks 8 years sentence for Shakira over tax evasion    Egypt: Alamein Art Festival kicks off a collection of recycled installations    Egypt's athlete Basma Emad wins bronze in weightlifting in Mediterranean Games    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Global economy to shrink by 5.2%, Egypt's GDP growth by 3%: World Bank
Published in Ahram Online on 11 - 06 - 2020

Global economy is expected to shrink by 5.2 percent in 2020, as the massive shock of the COVID-19 outbreak and shutdown measures to contain the pandemic have plunged the global economy into a severe contraction, according to the World Bank's global economic prospects report released on Thursday.
According to the report, between 71 million and 100 million people will be pushed into extreme poverty globally.
On Egypt, the report downgraded its expectations for the country's real GDP growth to three percent in 2020, down from 5.8 percent projected in January, and to 2.1 percent in 2021, down from by six percent.
As a result of the pandemic and oil market developments, GDP in the MENA region is expected to contract sharply by 4.2 percent in 2020, although there is substantial uncertainty around this projection, according to the report.
Economic activity in MENA is expected to contract by more than four percent in 2020, as consumption, exports, and services, such as tourism, are severely disrupted by the pandemic. In oil exporting countries, exports and fiscal revenues will sharply fall with the plunge in oil prices, the report said.
Yet, regional growth is expected to resume in 2021 as the impact of the pandemic subsides and investment improves.
“Risks to the outlook are heavily tilted to the downside and include much more widespread regional COVID-19 outbreaks, prolonged weakness in oil prices and global activity, and intensification of regional conflicts,” the report added.
“The forecasts have been further downward revised from those in January and April and reflect continued deterioration of the outlook in the global economy recently."
The report said emerging markets and developing economies (EMDEs) are forecast to contract in 2020 due to the COVID-19 pandemic.
The impact is expected to be most severe for EMDEs with large domestic outbreaks and those that rely heavily on global trade, tourism, commodity exports, and external financing, according to the report.
Per capita incomes are projected to contract deeply as well, causing the first net rise in global poverty in more than 20 years, the report expected.
Growth in EMDEs, according to the report, is projected to pick up in 2021 on the back of firming trade and investment as the effects of the pandemic wane.
Meanwhile, prospects for subdued commodity prices are expected to temper the recovery in commodity exporters, the report stated.
For the EMDEs outlook, the report expected their activity to contract by 2.5 percent in 2020, 6.6 percentage points below previous forecasts, and the worst rate since at least 1960, the earliest year when aggregate GDP data is available.
The projected fall in activity is broad-based, with nearly 80 percent of EMDEs expected to register negative growth in 2020, according to the report.
Growth in EMDEs is projected to rebound in 2021, to 4.6 percent, supported by the expected pick-up in China and a recovery of trade flows and investment, continued the report.
Excluding China, EMDEs' growth is envisioned to recover at a more modest pace in 2031, reflecting headwinds for commodity exporters amid subdued commodity prices and a weak rebound in services, according to the report.
“Economies dependent on tourism will be subject to an additional drag on growth. Through its effect on investment, as well as the loss of human capital among idled and furloughed workers, COVID-19 is likely to dampen long-term growth prospects and productivity."


Clic here to read the story from its source.