Mohieldin: Dlrs 4.2 trillion financing gap of global economic growth over pandemic

15 / 06 / 2021

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Executive Director of the International Monetary Fund (IMF) Mahmoud Mohieldin said the financial gap in global economic growth reached dlrs 4.2 trillion over the coronavirus pandemic.

Addressing the third Forum on Strategies for Transition to Green Economy, Mohieldin noted that the financing gap in economic growth rate before the pandemic stood at dlrs 2.5 trillion.

The number of coronavirus cases worldwide registered 175 million people, he said, noting that several countries, topped by the US, flattened the coronavirus curve and this is good news.

Mohieldin said the pandemic caused about 100 million people worldwide to suffer from abject poverty, 260 million people from malnutrition, while 250 million people lost their jobs.

He said growth rates are expected to be better than last year and to reach 6 percent.

Mohieldin added that international trade will flourish, noting that advanced countries will realize considerable growth rates, while low-income countries will not reach the aspired levels.

The Middle East and North Africa (MENA) region will achieve half of the international growth rates, he said.

He noted that Egypt was among few Arab countries that achieved positive growth rates during the pandemic crisis with 2.5% growth rate in the fiscal year that will end on June 30, 2021.

He added that Egypt is expected to achieve 5.7 percent growth rate in the coming fiscal year in accordance with the IMF estimations, so that the Egyptian economy became one of the highest growth rates in the Middle East.

He underlined the importance of merging sustainable growth rate standards, including the sustainability and governance standards, with the 17 United Nations Sustainable Development Goals.

He also highlighted that companies should work on achieving carbon neutrality in line with the Paris agreement.