Algerian gas to Spain will bypass Morocco: Ministers

UK’s more positive growth forecast ; US to introduce a ‘billionaires tax:’ Economic wrap

RIYADH: Britain’s economy is expected to grow by 6.5 percent in 2021, the country’s Chancellor of the Exchequer, Rishi Sunak, said in his Budget speech to parliament on Wednesday. This is a considerable revision from March’s forecast of 4 percent.

As for 2022, the economy is predicted to expand by a slightly lower 6 percent, the Chancellor added.

The country’s inflation rate is also expected to average at 4 percent for the next year, up from the current 3.1 percent. This is driven by rising energy costs and supply shortfalls.

Moreover, Sunak announced that around £6 billion ($8.2 billion) will be delivered to the National Health Service as it struggles with the mounting number of Covid-19 patients in the country.

Germany’s economy forecasts

Meanwhile, Germany’s economic growth forecast was sharply cut to 2.6 percent for 2021, down from April’s prediction of 3.5 percent, the German government said.

This was mainly driven by distortions in the supply chain as well as hikes in energy prices.

However, the forecast for next year was favorably altered to 4.1 percent up from the former expectation of 3.6 percent, the government added.

The economy ministry also said in a statement that inflation is forecast to reach 3 percent in 2021 but will taper off in the coming years. This will be the highest level since 1993. Inflationary pressures in global energy prices and supply disruptions contributed to the rise in consumer prices.

Price inflation is expected to be 2.2 percent in 2022 and 1.7 percent in 2023.

US Senate introduces ‘billionaires tax’

American billionaires are set to pay taxes on unrealized gains from their assets in order to finance Joe Biden’s social policy and climate change legislation, according to the top Senate Democrat for tax policy.

The legislation is expected to cost about $1.5-2 trillion.

The so-called “billionaires tax” is a part of a wider plan that also includes an anticipated 15 percent minimum corporate tax rate on the country’s most profitable companies.

Canada’s interest rate decision

Canada’s central bank held its interest rate at 0.25 percent. This comes at a time when the country grapples with the highest inflation rate since February 2003. The annual rise in consumer prices sat at 4.4 percent in September.

Morocco enters the global debt market

To provide around 20 percent of Morocco’s financing needs in its 2022 budget, its government plans to enter the global debt markets, Asharq reported citing Morocco’s Minister of Economy and Finance.

Based on the 2022 pre-budget statement, the country needs around MAD105 billion ($11.6 billion) in financing. It also needs to petition the parliament in order to increase the government’s external debt ceiling to MAD40 billion ($4.4 billion).

Meanwhile, the pre-budget statement also expects a rise in total public spending by 9 percent to reach MAD519 billion ($57.2 billion). Additionally, the budget deficit is predicted to slip next year to 5.9 percent of GDP from the 6.2 percent expected for this year, the government said last week.

Mexico’s trade deficit

The trade deficit in Mexico was $2.4 billion in September, falling from a surplus of $4.4 billion in the same month from last year, according to the country’s official statistics agency.

Imports to the country leaped by 29.1 percent to $44.1 billion, driven by purchases of intermediate goods and consumer goods which grew by 28.6 percent and 35.9 percent respectively.

This was accompanied by a lower growth in exports which rose by 8.2 percent only to reach $41.7 billion. The increase was largely accounted for by a 5.9 percent jump in non-oil exports as well as a 6.1 percent rise in exports of manufactured products.

Brazil’s unemployment

Brazil’s unemployment rate fell to 13.2 percent in the three months ending in August, down from 13.7 percent in May-July, official data revealed. This is the lowest unemployment level since May 2020.

In addition, the country’s participation rate rose to 58.6 percent.

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