Egypt, China sign deal to build level-3 biosafety lab    Foreign, housing ministers discuss Egypt's role in African development push    Egypt backs Palestinian unity, calls for ceasefire, aid access    EGX ends week in green on July 10    Egyptian pound strengthens against US dollar on July 10    Egypt, China central banks sign pacts to boost yuan use, payment systems    Egypt's EDA, Haleon discuss local market support    Environment ministry signs agreement to strengthen marine protection, promote ecotourism    Egypt, WHO discuss expanding health cooperation, development initiatives    Service restoration underway after Cairo telecom fire, minister tells PM    Chinese Premier Li Qiang arrives in Egypt for high-level talks    Gaza under siege, fire: Resistance intensifies amid deepening humanitarian collapse    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Pakistan boost healthcare ties – Cabinet    UK, Egypt strengthen cooperation on green transition, eco-tourism, and environmental investments    Escalation in Gaza as ceasefire talks remain fragile amid mounting humanitarian crisis    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Egypt's PM, Uruguay's president discuss Gaza, trade at BRICS summit    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger        Sisi launches new support initiative for families of war, terrorism victims    Egypt's GAH, Spain's Konecta discuss digital health partnership    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    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.




Published in Amwal Al Ghad on 30 - 03 - 2020

The Institute of International Finance (IIF) changed its forecasts for Egypt's growth to 2.7 percent from 5.4 percent in its recent reports about COVID-19's impacts on the region's economy.
It also downgrades its MENA growth forecast to -0.3% from their original 2020 forecast of 1.8 percent growth.
"MENA's current account is set to shift from a surplus of $28bn in 2019 to a deficit of $92bn in 2020, with the fiscal deficit widening from 3.7 percent of GDP in 2019 to 8.8 percent in 2020," the report said.
It added that a global recession will lead to a reduction in trade, foreign direct investment, tourism flows, and remittances to Egypt, Jordan, Morocco, and Lebanon, adding that Egypt stands to see a significant drop in Suez Canal transit revenue.
Non-resident capital flows to the MENA region are expected to decrease from $182 billion in 2019 to $101 billion in 2020, on the back of lower equity and debt flows, according the report.
"As in 2008 and 2009, resident outflows, mostly in the form of sovereign wealth funds (SWFs), will decline sharply from $215 in 2019 to $136 billion in 2020, reflecting the increasing need to tap SWFs to finance the large deficits. Nonetheless, official reserves are expected to drop by $120 billion, mostly in Saudi Arabia, Algeria, Iraq, and Iran. We also project a sharp decline in the cumulative SWFs of Kuwait, Qatar, and the UAE," the report projected.
Regarding global oil prices, the IIF expects that the nine MENA oil exporters will see a fall in hydrocarbon earnings in 2020 of $192 billion, which equals 11 percent of GDP.
For oil exporters, the IIF says they are likely to record large fiscal deficits due to the collapse in oil revenue, leading to a rise in public debt.
As a result, the cumulative current account balance would shift from a surplus of $65 billion in 2019 to a deficit of $67 billion in 2020, and the fiscal deficit would rise from 2.9 percent of GDP to 9.1 percent, the report projected.
The service sector will be hit the hardest as a result of social distancing, the report said.


Clic here to read the story from its source.