Mohamed El-Erian, the chief economic adviser at Allianz SE, spelled out five elements crucial for Egypt’s sustainable economic development, from which he excluded the size of debt, or value of pound.
Speaking with Daily News Egypt on the sidelines of the Egypt Economic Development Conference (EEDC) at Sharm el Sheikh, El-Erian said that the focus on the value of the pound, the sovereign debt and progress with the IMF are “misplaced obsessions” to which investors pay little attention. He added that what matters is economic growth.
Promoting economic growth, making sure it is inclusive, bringing everyone around this so that it is “part of their DNA”, having strong institutions to support this, and caring for the most vulnera segments of society are the five key steps that Egypt should focus on, according to El-Erian.
The Egyptian government aims to lure in billions of dollars from foreign investment through around 40 projects, which it will present during the summit.
A turbulent political scene has drastically rocked Egypt’s economy, which is slowly recovering, reaching a 3.5% economic growth last year, an increase from a record low following the 2011 unrest.
Commenting on Egypt’s debt, El-Erian said it is very little compared to the country’s GDP, and the country has no risk of defaulting.