Al-Sisi ratifies financial, technical cooperation agreements with Germany    Minneapolis mayor calls for arrest of police officer who knelt on George Floyd's neck    Spain says it will do all it can to reverse Nissan closure, workers protest    Bosnia to re-open borders with neighbouring countries on June 1    Lebanon removes banking secrecy rules to fight corruption    EGX to resume trading next Sunday    21 terrorists killed in two North Sinai security raids: Interior Ministry    Egypt removes 484 illegal constructions and encroachments on Nile    173 illegal constructions on waterways in Damietta referred to military prosecution    Trump preparing order targeting social media protections    China approves Hong Kong security law as tensions with U.S. rise    Huawei CFO loses key court fight against extradition to US    UK PM Johnson to go to Brussels next month for Brexit talks    How did Egypt use the internet during Ramadan?    Salah did not pressure administration to include players on team: Ghazal    Sisi calls on Egyptians to stand toghether against coronavirus    Health Ministry urges retired medical staff to join coronavirus fray    Saudi Arabia aims to reopen on 21 June    MACIC celebrates World Day for Cultural Diversity with webinar    Grand Museum receives 346 artefacts from Old, Middle Kingdoms    Unique late Ancient Egyptian cemetery discovered in Minya Governorate    European football set to restart despite coronavirus    Atletico Madrid forward Correa suffers muscle injury in training    Don't abandon us, we don't transmit coronavirus, say Cairo dogs and cats    US virus deaths top 100,000, caseloads rise in India, Russia    Australia's A-league to resume in July: FFA    Budget airlines put squeeze on airports in coronavirus cost drive    Belgian cup final back on and set for Aug. 1    Afrobeat, rap, house and more: Apple Music is launching its first radio show in Africa    Book Review: Power on the Nature of Power    UK musicians in lockdown rage against industry machine    'Didn't give a damn': Inside a ravaged Spanish nursing home    AfDB approves $500,000 in emergency coronavirus pandemic aid for Egypt    Egypt's stock Exchange back to regular trading hours on Sunday    Dubai government offices to resume work with 50% employees next Sunday, 100% on June 14    Disney unveils plans to reopen in mid-July    WHO: There is no evidence hydroxychloroquine helps treat coronavirus    Japan approves fresh $1.1 trillion stimulus to combat pandemic pain    Sisi congratulates Egyptians on occasion of Eid Al-Fitr    Egypt's Sisi congratulates Egyptians on the occasion of Eid El-Fitr    Egypt's interior ministry gives gifts to families of policemen killed or injured in the line of duty    Egypt is ready for 'serious and constructive' talks with Ethiopia, Sudan over GERD: Foreign ministry    Italy's football federation sets August 20 as deadline for finishing season    Egypt's decision to resume sports activities breathes life into hopes to restart league    Egyptian Premier League final decision to be taken before May-end: minister    Egypt's 12 MPs came into contact with coronavirus infected parliamentarian    iRead launches new activities, competitions to pread the passion for reading    British Council in Egypt makes its digital library for free amid coronavirus    







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





Egypt, MENA growth forecast at 2.7%, -0.3% respectively: IIF
Egypt likely to see significant drops in Suez Canal transit revenue, trade, FDI, tourism flows, and remittances
Published in Daily News Egypt on 29 - 03 - 2020

The Institute of International Finance (IIF) projects Egypt's growth now stands at 2.7%, down from their previous 2020 forecast of 5.4%. The IFF also downgrades its MENA growth forecast to -0.3% from their original 2020 forecast of 1.8% growth.
The latest figures follow the twin shocks of the COVID-19 and plunging oil prices, with additional downside risks likely.
"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% of GDP in 2019 to 8.8% in 2020," the report said.
The IIF expects that a global recession will lead to a reduction in trade, foreign direct investment (FDI), tourism flows, and remittances to Egypt, Jordan, Morocco, and Lebanon. The institute added that Egypt also expects a significant drop in Suez Canal transit revenue.
Based on the IIF`s baseline average oil price scenario of $40/barrel, the nine MENA oil exporters may see a fall in their 2020 hydrocarbon earnings, of $192bn (11% of GDP). Consequently, the cumulative current account balance would shift from a surplus of $ 65bn in 2019 to a deficit of $ 67bn in 2020. There would also be a fiscal deficit, widening from 2.9% of GDP to 9.1%.
The IIF expects the growth in MENA oil importers to decline by 2.4% to 0.8% in 2020, the lowest since the early 1990s.
The IIF also downgraded non-oil growth in Saudi Arabia from 3% to 0.8%, and deepened the recessions in Algeria, Iraq, and Iran. It also assumes modest increases in oil production in Saudi Arabia, the UAE, and Kuwait, leading to higher headline growth.
The IIF added that the service sector will receive the hardest hit as a result of containment efforts and social distancing. The IIF mentioned that all exporters are likely to record large fiscal deficits due to the collapse in oil revenue, leading to a rise in public debt.


Clic here to read the story from its source.