IMF cuts global growth rate forecast for 2021, keeps its 2022 forecast unchanged: Economic wrap

IMF cuts global growth rate forecast for 2021, keeps its 2022 forecast unchanged: Economic wrap
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Updated 12 October 2021

IMF cuts global growth rate forecast for 2021, keeps its 2022 forecast unchanged: Economic wrap

IMF cuts global growth rate forecast for 2021, keeps its 2022 forecast unchanged: Economic wrap

The IMF has slightly revised down its GDP growth forecast for 2021 to 5.9 percent from the previously reported 6 percent. The international organization cited supply chain problems and mounting inflationary pressures as obstacles that might hold back the global economy’s recovery. 

While the downgrade might seem a slight change, the IMF said in its report that “the outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics.”

The report also mentioned the disparities in economic outlooks between different countries as low-income countries risk facing lower growth and more poverty as well as significantly weaker vaccination rates.

The global growth forecast for 2022 remained unchanged at 4.9 percent.

The United States had a considerable downgrade for its 2021 growth forecast as it was reduced from 7 percent to 6 percent.

China’s forecast was reduced for both 2021 and 2022 to 8 percent and 5.6 percent respectively while the eurozone forecast was upgraded to 5 percent for 2021, up from the previous projection of 4.6 percent.

UAE Inflation 

The United Arab Emirates Consumer Price Index had an annual increase in August as it turned positive for the first time in 13 months. It stood at 0.55 percent in August, following a decline of 0.02 percent in the previous month. 

Prices of entertainment and culture services, as well as educational services, experienced the highest annual inflation.

Egyptian trade balance 

Egypt's trade balance deficit declined by 14.6 percent in July to reach $2.88 billion, compared to $3.37 billion in the same month last year, according to the Central Agency for Public Mobilization and Statistics. 

Exports leaped by a 31.5 percent annual growth rate. Plastics and ready-made clothing exports saw the highest growth, rising by 58 percent and 23.3 percent respectively.

UK unemployment

Data from the Office for National Statistics showed that the UK unemployment rate fell to 4.5 percent in the June-to-August period, the lowest in a year, as the labor market continued to recover.

However, the rate remained 0.5 percentage points higher than it was pre-pandemic.

South Korean interest rate

Korea’s Central Bank kept the country’s interest rate unchanged at 0.75 percent in its October meeting. However, it is possible that policy will tighten in November as policymakers might grapple with rising inflation and household debt.

Industrial production

Turkey’s industrial production has grown by an annual rate of 13.8 percent in August, compared to 9.7 percent in July, according to the Turkish Statistical Institute. Capital goods and intermediate goods grew at the highest rates as they increased by 20.5 percent and 15.4 percent respectively.

Meanwhile, Mexico’s industrial production continued its positive course as it grew by a yearly rate of 5.5 percent in August. However, this is the fifth consecutive month where growth has fallen down as last year's low base effects start to lose importance. The increase in production was mainly driven by an 8.7 percent growth rate in construction and an annual increase of manufacturing by 6.6 percent, official data revealed.

India’s industrial production also saw an increase of 11.9 percent in August, a slightly higher rate than the 11.5 percent recorded in the previous month. Mining and electricity largely induced this output growth according to Ministry of Statistics and Programme Implementation data.

Malaysian government data showed that the country’s industrial production declined at an annual rate of 0.7 percent in August, continuing its contractionary trend albeit at a smaller rate. In July, industrial production fell by 5.1 percent. While manufacturing output rose by 0.6 percent in August, electricity and mining activity shrank by 4.8 percent and 4.2 percent respectively.

Russian Inflation 

Russia expects inflation to increase in 2021 to 7.4 percent from the previous forecast of 5.8 percent, the economy minister said. This puts more pressure on the central bank for the sixth time this year to increase interest rates. Jumps in food prices are the main drivers of this predicted upswing.


Saudi imports from UAE jump back up in August

Saudi imports from UAE jump back up in August
Getty Images
Updated 9 sec ago

Saudi imports from UAE jump back up in August

Saudi imports from UAE jump back up in August
  • On an annual basis, UAE imports increased by about 47 percent

The value of Saudi Arabia's imports from the United Arab Emirates (UAE) in August increased by about 31 percent month on month, official data showed on Monday, jumping back from a steep decline in July after the kingdom imposed new rules on imports from other Gulf countries.


Imports from neighbouring UAE rose to 4.1 billion riyals ($1.09 billion) from 3.1 billion riyals in July, according to data from the General Authority for Statistics.

On an annual basis, UAE imports increased by about 47 percent.


The monthly increase follows a 33 percent decline in July, when Saudi Arabia amended rules on imports from other Gulf Cooperation Council (GCC) countries to exclude goods made in free zones or using Israeli input from preferential tariff concessions, a move seen as a challenge the UAE's status as the region's trade and business hub.


Aramco and TotalEnergies launch first two service stations in Saudi Arabia

Aramco and TotalEnergies launch first two service stations in Saudi Arabia
Updated 6 min 51 sec ago

Aramco and TotalEnergies launch first two service stations in Saudi Arabia

Aramco and TotalEnergies launch first two service stations in Saudi Arabia

RIYADH: Saudi Aramco and TotalEnergies have launched the first two service stations of their joint retail network in Riyadh, Saudi Arabia’s capital, and Saihat, in the country’s Eastern Province.

"It follows the signing of a 50:50 Joint Venture (JV) Agreement between Aramco and TotalEnergies in 2019, with plans to  significantly upgrade a network of 270 service stations and expand the range of quality retail services available across the Kingdom," Aramco said in a statement.

 


Saudi mining company, Maaden, turns into profit in first 9 months of 2021

Saudi mining company, Maaden, turns into profit in first 9 months of 2021
Updated 44 min 1 sec ago

Saudi mining company, Maaden, turns into profit in first 9 months of 2021

Saudi mining company, Maaden, turns into profit in first 9 months of 2021

RIYADH: Saudi Arabian Mining Co. (Maaden) has reported a net profit of SR3.1 billion ($826 million) in the first nine months of 2021, compared to a net loss of SR780 million a year ago, it said in a filing. 


Softbank Vision Fund, Mubadala invest in European mobility company TIER

Softbank Vision Fund, Mubadala invest in European mobility company TIER
Updated 53 min 31 sec ago

Softbank Vision Fund, Mubadala invest in European mobility company TIER

Softbank Vision Fund, Mubadala invest in European mobility company TIER

DUBAI: TIER, Europe’s micro-mobility company, announced the first close of its $200 million Series D funding round led by previous investors SoftBank Vision Fund 2, Mubadala Capital and adds new partners like M&G Investments, a green impact fund, and Mountain Partners, a diversified global investment holding.

The company, which entered the UAE market in 2020 after being selected as a leading service provider by the Roads & Transport Authority (RTA), said in a statement that the funding provides TIER with additional resources to fulfil its mission to "change mobility for good by providing the safest, most equitable and sustainable mobility solution in the market."


Telecom Zain KSA profits drop 36% for first 9 months of 2021

Telecom Zain KSA profits drop 36% for first 9 months of 2021
Updated 25 October 2021

Telecom Zain KSA profits drop 36% for first 9 months of 2021

Telecom Zain KSA profits drop 36% for first 9 months of 2021
  • The decline is due to a 1 percent drop in revenue, as well as rising revenue costs by 19 percent, the company said in a bourse filing. 

DUBAI: Saudi telecom firm Zain KSA posted a net profit of SR143 million ($38.1 million) in the first nine months of 2021, a 36 percent drop from the same period last year. 

The decline is due to a 1 percent drop in revenue, as well as rising revenue costs by 19 percent, the company said in a bourse filing. 

Lowering operating expenses and the results of the capital restructuring last year helped compensate for the fall, it added.