{"id":567373,"date":"2020-01-21T05:37:02","date_gmt":"2020-01-21T05:37:02","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/21\/what-were-tracking-on-21-january-2020\/"},"modified":"2020-01-21T05:37:02","modified_gmt":"2020-01-21T05:37:02","slug":"what-were-tracking-on-21-january-2020","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/21\/what-were-tracking-on-21-january-2020\/","title":{"rendered":"What we\u2019re tracking on 21 January 2020"},"content":{"rendered":"

<\/a> The World Economic Forum get underway this morning in Davos and runs through <\/strong>Friday. <\/strong>Read on for a taste of what\u2019s attendees are debating or skim through the agenda here<\/a>.<\/p>\n

The IMF has forecast \u201csluggish\u201d global growth over the next two years<\/strong>, revising downward its forecast for this year and the next in its annual pre-Davos update to its World Economic Outlook<\/a>. The fund now projects global economic growth to come in at 3.3% in 2020 (down from 3.4% in its last outlook in October) and 3.4% in 2021 (down from 3.6%). The report attributes this \u201csluggish\u201d pace of recovery to \u201cnegative surprises\u201d in several EM economies such as India, and increasing social unrest.<\/p>\n

The IMF expects EM growth to clock in at 4.4% in 2020 and 4.6% in 2021<\/strong>, marking a 0.2% downward revision for both years from the fund\u2019s October forecasts. Growth prospects in the Middle East and Central Asia region have also taken a hit, with the fund now projecting 2.8% growth this year, down 0.1 percentage point from October.<\/p>\n

The silver lining:<\/strong> Global growth looks like it bottomed out at the end of last year, and growth forecasts would have been even lower had it not been for the raft of monetary easing in several economies during 2H2019. The effects of the stimulus should continue to be felt in 2020, helping the global economy to recover in the early months of the year.<\/p>\n

Capitalism has a PR problem:<\/strong> The majority of people surveyed in this year\u2019s Edelman Trust<\/a>Barometer<\/a> believe that capitalism is doing more harm than good. The decades\u2019 old survey polled 34k people in 28 countries and found that 56% of respondents saw capitalism as a negative force in the world. The results provide more evidence of a breakdown of trust in traditional institutions, with the majority of respondents losing faith in media, business and governing institutions. (Reuters<\/a> | WSJ<\/a> | CNBC<\/a> | CBS<\/a> | Quartz<\/a>)<\/p>\n

And corporate trust in the global economy isn\u2019t much higher<\/strong>:<\/strong> Just a quarter of the 1,581 CEOs surveyed by PwC for its latest CEO poll (pdf)<\/a> describe themselves as confident in their prospects for revenue growth in 2020 \u2014 the lowest proportion since 2009. Just over half see global growth slowing this year, while in the Middle East 57% expect continued slowdown with only 11% improved growth.<\/p>\n

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Technical and legal committees from Egypt, Sudan, and Ethiopia <\/strong>will be in Khartoum<\/a><\/strong> tomorrow<\/strong> to hammer out a draft agreement on the filling and operating timetable for the Grand Ethiopian Renaissance Dam (GERD) ahead of meetings at the end of the month. The final round of US and World Bank-sponsored talks in Washington<\/a> last week ended without resolving key points of disagreement. The sides will return to Washington on 28-29 January to finalize an agreement.<\/p>\n

Egypt to host trade event in Dubai tomorrow:<\/strong> The Egyptian embassy in Dubai will tomorrow hold a trade and investment conference to promote economic ties, Al Masry Al Youm reports<\/a>. Egypt and the UAE have deepened commercial relations over recent months, with the UAE agreeing to set up a USD 20 bn investment platform<\/a> with the Sovereign Fund of Egypt and the country\u2019s investment council pledging to double its investments in Egypt to USD 14 bn by 2025<\/a>.<\/p>\n

Saturday is a day off for any private-sector companies for whom it would normally be a <\/strong>workday<\/strong> in official observance of Police Day, which is also the anniversary of the 25 January revolution.<\/p>\n

Stuff you can go to this week and next:<\/p>\n