Bm report on the economic outlook: Financial slowdown and strains
According to the World Bank’s latest economic outlook report, global growth has slowed sharply and the risk of financial stress in emerging and developing economies (EMDE) is intensifying amid high global interest rates.
Global growth is expected to slow to 2.1% in 2023 from 3.1% in 2022. In Emde other than China, growth is expected to slow to 2.9% this year from 4.1 % Last year. These forecasts reflect widespread downward revisions. The latest forecasts indicate that the overlapping shocks, the pandemic, the Russian invasion of Ukraine and the difficult global financial conditions have penalized the development of Emde in a prolonged way, a situation which will persist in the short term. By the end of 2024, economic activity in these economies is expected to be about 5% below levels projected on the eve of the pandemic. In low-income countries, especially the poorest, the damage is considerable, the organization says. In more than a third of these countries, per capita incomes in 2024 will still be below 2019 levels. This slow rate of income growth will entrench extreme poverty in many low-income countries.
In advanced economies, growth is expected to slow from 2.6% in 2022 to 0.7% this year and remain weak in 2024, according to the report. After growing by 1.1% in 2023, the US economy is expected to decelerate to 0.8% in 2024, mainly due to the lingering impact of the sharp rise in interest rates over the past 18 months. In the Eurozone, growth is expected to slow to 0.4% in 2023, from 3.5% in 2022, due to the lagged effect of tighter monetary policy and higher energy prices.
Agricultural investments: Five projects approved
Five investment projects have just been approved by the National Commission for granting advantages under the Agricultural Investment Promotion Agency (Apia). These projects, with a total value of 14.9 million dinars (MD), are spread over four governorates, namely La Manouba, Mahdia, Sfax and Nabeul. The commission also approved six land loans worth 1 MD over an area of 42 ha in the governorates of Kasserine and Sidi Bouzid.
It should be noted that the value of private agricultural investments approved by Apia during the first three months of the year 2023 fell by 20.9% compared to the same period of the previous year, standing at 123 .6 MD. The approved investments benefited from subsidies amounting to 34 MD, which represents 27.5% of the approved investment volume, against 39.5 MD during the same period of 2022. The credit rate fell from 18.9% to 16.4%. The benefit granting committees approved only five land loans worth 0.8 MD against nine loans worth 1.2 MD during the same period of 2022. These loans will allow the integration of 72 ha of land into the economic cycle compared to 86 ha, at the end of March 2022.
The Express article first appeared on La Presse de Tunisie.