Reuters has revealed the major economic transformations and surprises the world will witness during 2024, predicting that several countries will declare bankruptcy if they are unable to reschedule their debts in light of rising global interest rates.
In his report he said that a large segment of investors is convinced that major Western central banks are approaching the long-awaited shift from raising interest rates to lowering them, especially in the United States of America.
He stressed that this belief is due to the strength shown by the American economy during the period of the “Corona” pandemic, as well as attracting a lot of investments and funds.
On the other hand, the report refers to the views of numerous investors that the world is facing a series of economic storms and strikes, especially in light of the upcoming US presidential elections, which are believed to cause great polarization in the United States. society, as well as the fact that many countries around the world will witness fateful elections, points to the possibility that the world order will change radically and in unexpected ways.
The real estate sector is the most affected
The report predicts that the global real estate sector would be negatively affected by central banks’ continued interest rate rising policies, indicating that more property owners are likely to be forced to reevaluate their investment portfolios and abandon their buildings , with losses flowing to banks and investors, as is now happening with real estate companies. European Cigna in difficulty.
Countries will declare bankruptcy
The report reveals that some countries and companies will be forced to restructure their debts, to avoid facing the specter of bankruptcy, because they will not be able to sustain the interest payments, underlining that some countries have started real negotiations to renegotiate the debts.
Debt is eroding Egypt’s GDP
In Egypt, the total general budget deficit rose to $383.1 billion ($12.4 billion) during the first two months of the 2023-2024 fiscal year, equivalent to 3.2% of gross domestic product, compared to 1.4% in the same period. of the last fiscal year.
The volume of state budget expenditure increased during the first two months of the current fiscal year to 590.7 billion pounds (19.1 billion dollars), compared to 307.4 billion pounds (9.9 billion dollars) during the same period of the last fiscal year.
The increase occurred significantly in interest, which amounted to £391.8 billion ($12.7 billion) in July and August of the current fiscal year, up from £149.9 billion. ($4.8) from the same period last year.
Debts due in 2024
The Central Bank of Egypt had confirmed in a report late last year that total external obligations, including debt installments and interest, amounted to around $42.3 billion during the first half of 2024.
Increase in prices for basic services
By 2024, the Egyptian government has approved price increases of a large number of important services, which have placed additional pressure on consumers as part of the government’s efforts to increase its revenues and maximize the opportunity to increase the value of the package of bailout by the International Monetary Fund.
Electricity prices increased between 16% and 26%, while subway and train ticket prices increased, as well as internet package prices rising by more than 30%.
Increase the rescue package
The government is currently trying to increase the Fund’s $3 billion loan, which has been repeatedly delayed and postponed.
According to experts, the increase in service tariffs reflects the government’s efforts to make progress in implementing a reform program aimed at boosting the economy and overcoming the foreign currency shortage crisis.
2024-01-03 18:16:52
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