Reuters revealed major economic transformations and surprises that the world will witness during the year 2024, anticipating that a number of countries will declare bankruptcy if they are unable to reschedule their debts in light of the rise in global interest rates.
She said in her report that a large segment of investors are convinced that the major Western central banks are approaching a long-awaited shift from raising interest rates to lowering them, especially in the United States of America.
He pointed out that this belief is due to the strength shown by the American economy during the Corona pandemic, in addition to attracting a lot of investments and money.
On the other hand, the report referred to the opinions of a number of investors who believe 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 American society, in addition to the fact that many countries of the world will witness fateful elections. This indicates the possibility of the global system changing radically and in unexpected ways.
Real estate is most affected
The report expected that the global real estate sector would be negatively affected by the continued policies of raising interest rates in central banks, indicating that it is likely that more real estate owners will be forced to re-evaluate their investment portfolios and abandon their buildings, with losses flowing to banks and investors, as is happening now with the company. Distressed European real estate Cigna.
Countries will declare bankruptcy
The report revealed that some countries and companies will be forced to restructure their debt obligations, so as not to face the specter of bankruptcy, because they will no longer be able to bear the interest payments, pointing out that some countries have begun actual negotiations in order to reschedule the debts.
What about Egypt? In Egypt, the total deficit in the general budget rose to $383.1 billion ($12.4 billion) during the first two months of the current fiscal year 2023-2024, equivalent to 3.2% of GDP, compared to 1.4% during the same period of the year. Last financial.
The volume of state budget expenditures increased during the first two months of the current fiscal year to 590.7 billion pounds ($19.1 billion), compared to 307.4 billion pounds ($9.9 billion) during the similar period of the last fiscal year.
The increase came significantly in the interest item, which amounted to 391.8 billion pounds ($12.7 billion) during July and August of the current fiscal year, compared to 149.9 billion pounds ($4.8) during the same period last year.
Debts due in 2024
The Central Bank of Egypt had confirmed in a report at the end of last year that total external obligations, including installments and debt interest, amounted to about $42.3 billion during the first half of 2024.
Raising prices for basic services
By 2024, the Egyptian government approved increases in the prices of a large number of major services, which imposed additional pressure on consumers as part of the government’s efforts to increase its revenues and maximize the opportunity to raise the value of the rescue package from the International Monetary Fund.
Electricity prices increased by rates ranging between 16% and 26%, while the prices of metro and railway tickets increased, in addition to the prices of internet packages increasing by more than 30%.
Increase the rescue package
The government is currently seeking to increase the Fund’s $3 billion loan, which has been repeatedly delayed and postponed.
According to experts, the increase in service fees reflects the government’s efforts aimed at achieving progress in implementing a reform program aimed at reviving the economy and overcoming the foreign currency shortage crisis.
2024-01-05 08:11:31
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