High inflation continues to affect African pay packets, uncertainty in Middle East continues

Despite inflation forecasted to increase 10 percent in 2020, employers in Egypt are expected to offer employees a real salary increase of 2.8 percent. This follows a year in which wages shrunk 0.7 percent in 2019.Meanwhile, in the Middle East, Saudi Arabia saw the biggest real increase in salaries in 2019 but is expected to plummet in the rankings in 2020. Real salary increases are forecast to reach 2.4% on average, a long way short of the 5.8% increase that was seen in 2019.“Inflation has risen significantly throughout the Middle East as the stable commodity prices boost domestic demand. This has seen Saudi Arabia, UAE and Qatar all drop out of the global top ten as rising inflation cuts into the real salaries of workers in the region,” explained Kilfedder.(font: ECA International http://www.eca-international.com)