Business

IMF revises down eurozone 2022 growth forecast over Ukraine conflict

Published

2 years ago

20/04/2022

MNN

The International Monetary Fund has cut the growth rate for eurozone for 2022 to 2.8 percent, from 3.9 percent in its January estimate.

The conflict in Ukraine will weigh heavily upon economic growth in the eurozone, the IMF has said, as the conflict wreaks havoc on energy prices and the manufacturing sector.

The International Monetary Fund on Tuesday revised down its eurozone growth forecast for 2022 to 2.8 percent, from 3.9 percent in its January estimate, with the region’s biggest economy, Germany, taking a heavy hit.

“The main channel through which the war in Ukraine and sanctions on Russia affect the euro area economy is rising global energy prices and energy security,” the IMF said in its World Economic Outlook report.

The conflict has hurt some countries like Italy and Germany more than other European nations because they had “relatively large manufacturing sectors and greater dependence on energy imports from Russia”, the IMF said.

Germany’s economy is now expected to grow by 2.1 percent this year, down from the previous forecast of 3.8 percent. Italy will also take a heavy hit, with growth of 2.3 percent compared to an earlier forecast of 3.8 percent.

Ukraine conflict

After Moscow’s attack on Ukraine in February, the West including eurozone countries imposed sanctions on Russia’s financial system, aviation sector and other major parts of the economy.

Nearly two months later, prices are rising. Oil remains above $100 per barrel after reaching historic highs in March, while the price of gas, wheat, aluminium, nickel and other raw materials have soared.

As a result, consumer price inflation in the eurozone has surged to 7.5 percent, an all-time high.

Pierre-Olivier Gourinchas, chief economist of the IMF, warned during a briefing that any tightening of sanctions would lead to “a more significant reduction in economic activity in the euro area”.

But in comments likely to provide a little relief, Petya Koeva Brooks, deputy director in the IMF’s research department, said the Fund does not expect a recession in the eurozone area.

The drag from the conflict in Ukraine comes as the eurozone economy was set to fully recover from the pummelling it took from the pandemic in 2020.

The IMF had predicted last October that eurozone growth would be 4.3 percent in 2022 before lowering the forecast in January due to a global supply chain crisis and the emergence of the Omicron variant of the coronavirus.

The IMF’s latest report also lowered the eurozone’s growth outlook for 2023 to 2.3 percent, down from 2.5 percent previously.

But it slightly increased its forecast for Germany to 2.7 percent. Italy’s growth, however, will slow further to 1.7 percent.

Source: AFP

Business

Dubai company awarded the development of SEZ

Published

4 hours ago

12/05/2024

An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews

Business

Over USD 713M generated attributing to revenue increasing by 3.7%

Published

1 day ago

11/05/2024

Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.

The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.

Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.

Source(s): PsmNews

Business

Maldivian regional fleet grows with fourth ATR arrival

Published

4 days ago

09/05/2024

Maldivian, the national carrier of the island nation on Wednesday, announced the arrival of its newest addition to the fleet, a fourth ATR 42-600 aircraft.

The new aircraft added to the carrier landed at Velana International Airport some time on Wednesday.

In order to commemorate the milestone, a special ceremony was held at VIA which was attended by distinguished guests, officials and key partners.

The new aircraft, Maldivian added, will enhance the airline’s capacity to serve more routes and provide increased connectivity for both locals and tourists. Moreover, this fleet expansion also reflects Maldivian’s commitment to offering exceptional service and convenience to its passengers.

At Wednesday’s event to welcome the new ATR aircraft, Maldivian’s Managing Director Ibrahim Iyas emphasized the importance of the new aircraft in the company’s growth strategy.

“We have made great strides toward achieving both operational excellence and a greater passenger experience with the addition of this brand-new ATR aircraft to our fleet,” Iyas commented.

“This aircraft offers an unprecedented level of comfort thanks to improved interior humidity control and much lower noise levels. Modern avionics and exceptional fuel economy which further support our dedication to sustainability while maximizing performance throughout our expanding network.”

Maldivian fleet currently has 25 aircraft which include an Airbus A320 commercial carrier, four ATRs, nine Dash-8 series aircraft and eleven Twin Otter seaplanes.

Source(s): sun.mv