Egypt is enjoying a “resilient economy with real opportunities for growth”, according to a January report by Dcode Economic and Financial Consulting (Dcode EFC).
The report was featured on a website launched in January under the name “Egypt, the Future”.
The website covers the latest economic news related to Egypt, and features news on the Economic Summit, whilst also presenting the latest investments made by countries and companies in the market and more.
The report illustrated that Egypt’s economy has an ability to “withstand external and internal shocks”, clarifying that during the global financial crisis, Egypt was able to accomplish annual growth rates of approximately 5%.
The Egyptian economy has also seen an upturn, as in the third quarter (Q3) of the fiscal year (FY) 2013/14, real GDP growth registered 2.5%. It then inched up to reach 3.6% in Q4 of FY 2013/2014 and finally in Q1 of 2014/15 it jumped to 6.8%.
According to the report, this increase was attributed to “much higher capacity utilisation rates in the industrial sector, higher investments in infrastructure and construction projects, and a pickup in real estate market activity”.
Highlighting past records, the report showed that high growth rates were achieved before 2011.
In FY 2007/08, the country accomplished real GDP growth of 7.2%, during the economic crisis in FY 2008/09, the country registered a growth rate of 4.7%. It grew in FY 2009/10 to reach 5.1%. The prior numbers were a result of the backing up of “the young and relatively small sectors of Telecommunications, Real Estate, Construction & Building and Financial Services. At the same time, the larger, conventional sectors of Manufacturing, Agriculture and Extractive Industries maintained solid growth” the report added.
Further in FY 2011/12, real GDP growth dropped to reach 2.3%, while in FY 2012/13 and FY 2013/14 it stood at 2.1%.
The report further noted that over the course of the political instability witnessed since 2011, growth rates were low but remained positive. The report added that growth in recent years was mainly backed up by household consumption, which represents more than 80% of GDP.
The Egyptian economy will witness more economic growth in the coming years, to be supported by investment and the “resilience of consumption”, the report projects.
Egypt’s Economic Summit will open the doors for investors internationally and domestically to participate and know more about available investment opportunities in Egypt.
Minister of Investment Ashraf Salman revealed Monday that Egypt will present 30 different investment projects worth a total of $20bn at the Summit.