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The Arab League proposes to create a crisis fund with the possibility of 7.1 million people losing their jobs
The Corona pandemic has caused violent economic effects on the Arab economy, as total losses so far have reached around $ 1.2 trillion, amid expectations that around 7.1 million workers will lose their jobs, according to a report released by the League of Arab States. , which asked for the creation of a crisis fund that could push the weight of the threatening circumstance to Allevia.
This is what emerges from the first report released by the General Secretariat of the League of Arab States on the economic affairs sector of the League on the implications of the Corona virus on the economies of Arab countries, as it highlights the short and long-term repercussions and the impact of those impacts on the health, agriculture, food and development sectors.
The Coronavirus Long-Term Economic Effects Report on Arab Countries said the current crisis is negatively impacting economic growth in Arab countries, revealing estimates that include ESCWA data on the economic losses of the crisis and its costs. totaling $ 1.2 trillion so far. In addition, 7.1 million workers are expected to lose their jobs by the end of the year.
In detail, the report indicated that the losses were as follows: losses of $ 420 billion in market capital, losses of $ 63 billion in member states’ income (gross domestic product), additional debt of $ 220 billion, and a loss of 550 million dollars a day. In oil revenues, a $ 28 billion drop in exports, a loss of more than $ 2 billion in tariff revenue, and a loss of approximately 7.1 million jobs in 2020.
The report states that, according to a preliminary assessment by the International Labor Organization, the “Covid-19” epidemic will have a significant impact on labor markets around the world with high unemployment, indicating that financial markets have been impacted. negatively and significantly since the outbreak of the virus, with the growing global connection between them. Some have been since the beginning of the millennium.
The report predicts that the repercussions of the virus will have serious and far-reaching effects on the global and Arab economy, especially in countries that have high unemployment rates and levels of malnutrition, which will see an unprecedented increase in the social conditions of the population, and will increase pressure on private business sectors that are forced to close. His work and layoffs and workers.
He stressed that the health and food safety sectors are among the sectors that will be severely affected by the crisis, and that the sectors most affected by this epidemic are the oil, tourism and air transport sectors, and the importance to pay attention to the sectors of the medical supply and communication and information technology industries thanks to “Corona”. .
The report addressed the short-term repercussions in Arab countries, stating the following: “Although the situation in Arab countries is so far much better than it is in the United States of America, EU countries and China, the most Arab countries have resorted to precautionary measures in an effort to prevent the spread of the epidemic. To avoid access to the bad conditions suffered by the countries, which have registered cases of contagion beyond the ability of the health system to follow them “.
The report added that this was reflected in huge losses in the aviation and tourism sector, the loss of nearly one million jobs and hundreds of thousands of seasonal jobs in the Arab world, as well as the sharp drop in prices. of oil at the lowest levels, which has led to high levels of unemployment and influenced the income and purchasing power of individuals, what predicts the occurrence of recession and stagnation in the markets, together with high levels of inflation.
The report presented a number of proposals, including the establishment of an Arab Crisis Fund similar to the Support Fund for Small and Medium-sized Enterprises, reviewing the requirements for providing financial support to Member States, establishing more flexible temporary conditions and postponing installments. owed by Arab countries during that period without affecting this. To grant them further benefits or incur any expenses for this postponement.
Among the proposals, also the formation of crisis task forces of the relevant Arab Joint Action Institutions and Arab Financing Institutions, whose task is to monitor the impact of the crisis on Arab countries, in order to prepare sectoral studies on the impact of the crisis and then suggest the necessary policies.
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