Will the Vaccine Work?

REPORT: 1 TO 15 January 2021

The fate of the ME and the World depends on this small vile. The question is: will it work? Photo credit: BBC news.

2021 began with positive predictions for the coming two years, forecasting growth and a return back to pre-covid stats for the Middle East. Yet, the pandemic has tightened its grip on ME’s economy and its way of life, and continues to exponentially claim more victims. It is as though predictions concerning the economy are all dependent on the vaccine’s distribution and its efficacy in fighting the virus; two factors which are not guaranteed.

THE SOCIO-ECONOMIC SITUATION

ESCWA representative discussing Egypt’s expected economic growth despite the pandemic in the region. Dec, 30 2020, photo credit

Egypt

·The International Monetary Fund (IMF) forecasted that Egypt’s economy this financial year, will rise to to 2.8%, matching the lower end of the government’s own estimate and citing.[1]

·According to ESCWA (United Nations Economic and Social Commission for Western Asia) it is estimated to have contracted by at least 1.1% in 2020 as a result of the novel coronavirus (COVID-19) pandemic. It is, however, projected to recover by 6.1% in 2021.[2]

Chairing a National Policies Council (NPC) meeting, attended by His Royal Highness Crown Prince Al Hussein bin Abdullah II, King Abdullah stressed that public health has been the top priority since the outbreak of COVID-19, noting recent improvements in the epidemiological situation. Jan 12, 2021, photo credit: Mena Fn.

Jordan

·According to a World Bank report, Jordan’s economy is set to grow by 1.8 percent in 2021 and rise to 2.0 percent in 2022.[3]

·On the 12th of January, His Majesty King Abdullah directed the government to reopen schools and various sectors in a systematic manner that safeguards public health and the national economy.[4]

In December, The Central Bank of Iraq also had devalued the dinar against the US dollar by 18.5% as a measure to counter the financial crisis. Dec. 28, 2021, Photo credit: Arab Brazelian Chamber of Commerce.

Iraq

·The Iraqi administration government added major fiscal reforms into its 2021 budget in an attempt to mitigate the effects of the pandemic and of low oil prices on the population.

Riad Salameh, January 9, 2021, photo credit: Prensa Latina.

Lebanon

·        According to Riad Salameh, governor of Lebanon’s central bank, untying of the national currency from the dollar and its value would depend on an agreement with the International Monetary Fund.[5]

·        The Institute of International Finance warned that Lebanon is heading towards a failed state scenario urging it to pursue significant reforms which could lead to an agreement with the International Monetary Fund.[6]

Before the pandemic, about 65,000 Palestinians worked for Israeli contractors inside Israel. Photographer: Mohammed Abed/AFP/Getty Images

Palestine

·        The Israel Builders Association asked the government to allow Palestinian workers to get vaccinated due to their economic importance.[7]

·        According to an official report, the Palestinian economy has declined by up to 12 percent in 2020 because of the pandemic.[8]

A picture of a marketplace in Syria amidst a suffering economy, Dec. 2020.

Syria

·Syrians once again find themselves facing long queues at petrol stations as shortages of oil products in the country resume, bringing a few weeks of relative stability to an end.

·The Syria Recovery Trust Fund (SRTF), an opposition-affiliated fund which finances projects outside government control, claimed it had received about EUR 19 million in new funding to support programs in areas retaken from the Islamic State militant group.

Cyprus edges deeper into crypto currency amidst a pandemic, photo credit: 123F

Cyprus

·The Cyprus Securities and Exchange Commission (CySEC) issued for the first time regulations regarding cryptocurrency to safeguard that Cyprus Investment Firms (CIFs), make provision to cover investments in cryptocurrencies and that risks involving cryptocurrencies are managed property.[9]

 
Communication and Public Relations Department

[1] Reuters, January 8, 2020, https://www.reuters.com/article/uk-egypt-imf/imf-projects-egypts-economy-will-grow-28-in-2020-21-year-idUSKBN29D1YE

[2] Media Fn, Dec. 30, 2020, https://menafn.com/1101363913/2020-Egypt-economy-contracts-11-but-61-recovery-projected-in-2021-ESCWA

[3] Ammon News, Jan 7, 2021, https://en.ammonnews.net/article/45780

[4] Mena Fn, Jan 12, 2021, https://menafn.com/1101424177/Jordan-King-directs-govt-to-reopen-schools-sectors-while-safeguarding-public-health-economy&source=246

[5]Prensa Latina, Jan 9 , 2021, https://www.plenglish.com/index.php?o=rn&id=63361&SEO=us-dollar-to-be-untied-from-lebanons-economy

[6] Arabian Business, Dec 22, 2020, https://www.arabianbusiness.com/politics-economics/456306-lebanon-headed-towards-failed-state-without-reforms-says-iif

[7] Bloomberg, Dec. 30, 2020, https://www.bloomberg.com/news/articles/2020-12-30/short-of-workers-israel-builders-seek-to-vaccinate-palestinians

[8] Xinhuanet, Jan 12, 2021, http://www.xinhuanet.com/english/2020-12/21/c_139605436.htm

[9] Mondaq, January 12, 2021, https://www.mondaq.com/cyprus/fin-tech/1024388/introduction-of-new-rules-governing-derivatives-on-virtual-currencies-cryptocurrencies