(by Francesco Tedesco)NAPLES - Economic growth has halted abruptly in Egypt and Morocco, two of the most dynamic countries in North Africa while declining oil prices have harmed the Arabic peninsula. The study, quoted by the website ecomnewsmed.com, had forecast a general GDP growth in the area of 1.8% in 2020 but has inverted its outlook, forecasting a 0.3% drop in GDP and a high increase in the unemployment rate. The drop in oil prices, the downturn in the demand for raw materials and agricultural produce, together with the decline of tourism, were the reasons cited by the study. Tourism affects 8% of the national economy, concerning all services such as air transport, hotels, craftsmanship and the food sector. Dropping oil prices are also weighing on Algeria's economy, which was expected to grow by 1.6% of GDP in 2020 and will now shrink by 1.5%, according to forecasts.

Source: The North Africa Journal April 09, 2020 15:22 UTC