Arab Economies Incurred $1.2 Trillion Losses Due to Coronavirus

 Shoppers are seen in an aisle with subsidized vegetable oils at a government outlet in Cairo, Egypt August 29, 2017. REUTERS/Mohamed Abd El Ghany
Shoppers are seen in an aisle with subsidized vegetable oils at a government outlet in Cairo, Egypt August 29, 2017. REUTERS/Mohamed Abd El Ghany
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Arab Economies Incurred $1.2 Trillion Losses Due to Coronavirus

 Shoppers are seen in an aisle with subsidized vegetable oils at a government outlet in Cairo, Egypt August 29, 2017. REUTERS/Mohamed Abd El Ghany
Shoppers are seen in an aisle with subsidized vegetable oils at a government outlet in Cairo, Egypt August 29, 2017. REUTERS/Mohamed Abd El Ghany

The novel coronavirus pandemic had a harsh economic impact on the Arab economy, with total losses so far amounting to about $1.2 trillion, amid expectations that some 7.1 million workers will lose their jobs.

Those numbers were emphasized in a report issued by the Arab League, which called for the establishment of a crisis fund that could alleviate the repercussions of the force majeure.

The report, which was prepared by the League’s economic affairs department, shed light on the short and long term repercussions of the virus and their impact on the sectors of health, agriculture, food and development

The report detailed the losses as follows: $420 billion in market capital, $63 billion in the GDP of member countries, additional debts of $220 billion, and a daily loss of $550 million in oil revenues, in addition to a decline in exports of $28 billion, more than $2 billion in tariff revenues and loss of about 7.1 million jobs in 2020

The report said that, according to a preliminary evaluation conducted by the International Labor Organization (ILO), the COVID-19 pandemic will have a major impact on labor markets around the world with the soaring unemployment rate.

It added that the health care and food security sectors would be affected the most by the crisis, as well as the industries of oil, tourism and air transport.

The report examined the short-term repercussions in the Arab world, stating: “Although the situation in the Arab countries is much better compared to the United States, the European Union and China, most countries resorted to precautionary measures to contain the virus… leading to huge losses in the aviation and tourism sectors and the loss of about one million employments and hundreds of thousands of seasonal jobs, in addition to the sharp decline in oil prices.”

The report presented a number of proposals, including the establishment of an Arab fund for crises and reviewing the requirements for providing financial support to member-states, by setting more flexible temporary conditions, and postponing outstanding installments during this exceptional period.



Tunisia Gets Offers in 75,000 T Soft Wheat Tender, Traders Say

Agricultural labourers harvest the wheat crop at Chadiala village in the northern Indian state of Punjab April 10, 2008. REUTERS/Ajay Verma (INDIA)
Agricultural labourers harvest the wheat crop at Chadiala village in the northern Indian state of Punjab April 10, 2008. REUTERS/Ajay Verma (INDIA)
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Tunisia Gets Offers in 75,000 T Soft Wheat Tender, Traders Say

Agricultural labourers harvest the wheat crop at Chadiala village in the northern Indian state of Punjab April 10, 2008. REUTERS/Ajay Verma (INDIA)
Agricultural labourers harvest the wheat crop at Chadiala village in the northern Indian state of Punjab April 10, 2008. REUTERS/Ajay Verma (INDIA)

The lowest price offered in the international tender from Tunisia's state grains agency on Thursday to purchase about 75,000 metric tons of soft wheat was believed to be $262.91 a ton cost and freight (c&f) included, European traders said.

Offers are still being considered and no purchase has yet been reported. The lowest offer is not always accepted if conditions attached to it are regarded as unattractive, Reuters reported.

The lowest offer was believed to have been submitted for optional-origin wheat by trading house Cargill for 25,000 tons, they said.

Cargill also made the next lowest offer of $263.91 also for 25,000 tons, they said.

Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.

Shipment was requested between May 20 and June 30 depending on origin supplied.