Economy grows amid the pandemic    Preview: Assar faces world champion in table tennis, swimmer Osman has chance for redemption at Tokyo Olympics    Tunisia on edge    Newsreel    Finding solutions to the GERD crisis    Myths and facts on the GERD    Facing an uphill task, Egypt's Mostafa Mohamed to start in CL game against Eindhoven    'Healthcare, not sick care'    Developing Fustat Park    Self-saucing chocolate pudding cake    Ethiopia predicts possible floods in downstream countries due to heavy rainfall    Vaccination conspiracy theories: The goofy, the sad, and the useful    Egypt's first monorail train set for administrative capital arrives in Alexandria Port    Egypt's stocks finish in green as benchmark EGX 30 adds 0.62% on Tuesday    Egypt's Banque Misr mulls committing EGP20.8 billion in joint lending    Remembering Egyptian filmmaker Youssef Chahine: The perpetual rebel    Russian delegation to visit Egypt today for Sharm al-Sheikh, Hurghada security checks    Remembering Roushdy Abaza: Egyptian silver screen's first man    Canada's Barrick Gold signs deals to explore for gold in Egypt for first time    Israeli war crimes against Palestinians apparent in Gaza war: HRW    Egypt urges agreement to adapt to climate change effects: Environment minister    Tokyo 2020 Day 4 summary: Egypt's Elsalamoney disqualified from Triathlon    Russia flights to Egypt resorts of Sharm el-Sheikh, Hurghada to resume on August 9    Orange Egypt Introduces Amazon Prime Video    Tokyo Olympics: Cautious opening ceremony, shy start for Egyptians in competitions    Mallawi Museum in Upper Egypt holds recycling workshop for children during Eid Al-Adha    Egypt keen on stable tax policies to attract more investors: Finance Minister    Niagara Falls illuminated in Egyptian flag to mark 23 July Revolution anniversary    Thanaweyya Amma exams resume after Eid Al-Adha holidays    Sudan declares state of emergency as water goes beyond Merowe Dam capacity    Capital flows into EM keep recovering after March 2020 slump: Central Bank of Egypt    1 child orphaned every 12 seconds due to COVID-19-associated death: World Bank    Egypt, Japanese Olympic Committee discuss boosting sports cooperation    US emphasises AU's role in mediating Ethiopian damdispute    Ethiopia ready to resume dam talks with no legally binding agreements: Ethiopian official    Sunken city of Thônis-Heracleion in Egypt's Abu Qir bay yields new archaeological treasures    New films, concerts, and destinations for Eid Al-Adha holidays    Egypt condemns Israeli violations of Jerusalem's Al-Aqsa Mosque    Egypt, Oman discuss enhancing bilateral economic, investment relations    Al Ahly v Kaizer Chiefs: Cairo giants eye 10th CAF Champions League title    Etisalat Misr partners with Bassita to contribute to a Cleaner Nile    Egypt to receive first shipment of Pfizer, J&J vaccine doses soon – minister    Tunisia hopes to have a UN role in resolving Egypt-Ethiopia dam dispute    Egypt denounces Ethiopia's move to start second filling of giant dam    APO Group enters new exclusive agreement with Getty Images on African press releases and images    On International Museum Day, Egypt opens two new museums at Cairo Airport    Egypt's Ahly is establishing a new stadium, expected to be 'sports complex'    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    







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.