UK’s more positive growth forecasts; The United States will introduce a “tax on billionaires”: economic envelope
RIYAD: Britain’s economy is expected to grow 6.5% in 2021, the country’s Chancellor of the Exchequer Rishi Sunak said in his budget speech to Parliament on Wednesday. This is a significant revision from the 4 percent forecast for March.
As for 2022, the economy is expected to grow slightly below 6%, added the Chancellor.
The country’s inflation rate is also expected to average 4% for next year, compared to 3.1% currently. This is due to rising energy costs and supply shortages.
Additionally, Sunak has announced that around Â£ 6 billion ($ 8.2 billion) will be delivered to the National Health Service as it grapples with the growing number of Covid-19 patients in the country.
Germany’s economic forecast
Meanwhile, Germany’s economic growth forecast has been sharply reduced to 2.6% for 2021, from 3.5% in April, the German government said.
This is mainly due to distortions in the supply chain as well as increases in energy prices.
However, the forecast for next year has been favorably changed to 4.1%, up from the old expectation of 3.6%, the government added.
The Economy Ministry also said in a statement that inflation is expected to reach 3% in 2021 but will decline in the years to come. This will be the highest level since 1993. Inflationary pressures on world energy prices and supply disruptions have contributed to the rise in consumer prices.
Price inflation is expected to be 2.2% in 2022 and 1.7% in 2023.
US Senate introduces “billionaire tax”
American billionaires should pay taxes on unrealized gains on their assets to fund Joe Biden’s social policy and climate change legislation, according to the Senate’s top Democrat for tax policy.
The legislation is expected to cost around $ 1.5 to $ 2 trillion.
The so-called “billionaires’ tax” is part of a larger plan that also includes an expected 15% minimum corporate tax rate on the country’s most profitable companies.
Canada’s decision on interest rates
The central bank of Canada kept its interest rate at 0.25%. This comes at a time when the country is grappling with the highest rate of inflation since February 2003. The annual increase in consumer prices stood at 4.4% in September.
Morocco enters the global debt market
To cover around 20% of Morocco’s financing needs in its 2022 budget, his government plans to enter global debt markets, Asharq reported citing Morocco’s Minister of Economy and Finance.
Based on the 2022 pre-budget statement, the country needs around 105 billion dirhams ($ 11.6 billion) in funding. He is also due to petition parliament to increase the government’s external debt ceiling to 40 billion dirhams (4.4 billion dollars).
At the same time, the pre-budget press release also forecasts an increase in total public expenditure of 9% to reach 519 billion dirhams (57.2 billion dollars). In addition, the budget deficit is expected to fall next year to 5.9% of GDP from the 6.2% expected for this year, the government announced last week.
Mexico’s trade deficit
Mexico’s trade deficit was $ 2.4 billion in September, down from a surplus of $ 4.4 billion in the same month from a year ago, according to the country’s official statistics agency. .
The country’s imports jumped 29.1% to 44.1 billion dollars, driven by purchases of intermediate goods and consumer goods which increased by 28.6% and 35.9% respectively.
This was accompanied by weaker growth in exports, which rose only 8.2 percent to $ 41.7 billion. This increase is largely explained by a 5.9% jump in non-oil exports as well as a 6.1% increase in exports of manufactured products.
Unemployment in Brazil
Brazil’s unemployment rate fell to 13.2% in the three months ending in August, from 13.7% in May-July, official data revealed. This is the lowest unemployment rate since May 2020.
In addition, the country’s turnout stood at 58.6 percent.