By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Mountain View Sets New Standards for Life Experiences Built On the Science of Happiness at iCity
    September 22, 2023
    Egypt's Emigration Minister meets with founding board of Egyptians Abroad for Investment Company
    Egypt’s Emigration Minister meets with founding board of Egyptians Abroad for Investment Company
    September 21, 2023
    ABB allocates €13bn for green transformation by 2030
    ABB allocates €13bn for green transformation by 2030
    September 21, 2023
    DMZ Cairo Demo Day 2023 showcases Egypt's top tech startups
    DMZ Cairo Demo Day 2023 showcases Egypt’s top tech startups
    September 21, 2023
    Valu partners with Le Marche, Electrotech to offer payment solutions for furniture, electronics Expo
    Valu partners with Le Marche, Electrotech to offer payment solutions for furniture, electronics Expo
    September 21, 2023
  • Politics
    PoliticsShow More
    CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
    CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
    September 22, 2023
    Egyptian Health Minister highlights country's interest in local drug manufacturing
    Egyptian Health Minister highlights country’s interest in local drug manufacturing
    September 21, 2023
    Egypt leads meeting to urge global support for Sudan’s humanitarian crisis
    Egypt leads meeting to urge global support for Sudan’s humanitarian crisis
    September 20, 2023
    Egypt and EU co-chair GCTF meeting, reaffirm commitment to fighting terrorism
    Egypt and EU co-chair GCTF meeting, reaffirm commitment to fighting terrorism
    September 20, 2023
    Children dying in Sudan amid healthcare system collapse
    Children dying in Sudan amid healthcare system collapse
    September 20, 2023
  • Interviews
    InterviewsShow More
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    September 18, 2023
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    September 14, 2023
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    September 12, 2023
    India welcomes Egypt's BRICS membership: Boosting trade, investment, and access to strategic commodities
    India welcomes Egypt’s BRICS membership: Boosting trade, investment, and access to strategic commodities
    September 11, 2023
    The box office is not a measure of success: Basma Hassan
    The box office is not a measure of success: Basma
    September 6, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Fitch Solutions is confident about Egypt’s investment outlook in the next five years
Share
Notification
Latest News
CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
Politics
Mountain View Sets New Standards for Life Experiences Built On the Science of Happiness at iCity
Real Estate
Egypt's Emigration Minister meets with founding board of Egyptians Abroad for Investment Company
Egypt’s Emigration Minister meets with founding board of Egyptians Abroad for Investment Company
Business
ABB allocates €13bn for green transformation by 2030
ABB allocates €13bn for green transformation by 2030
Business
DMZ Cairo Demo Day 2023 showcases Egypt's top tech startups
DMZ Cairo Demo Day 2023 showcases Egypt’s top tech startups
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Fitch Solutions is confident about Egypt’s investment outlook in the next five years
Business

Fitch Solutions is confident about Egypt’s investment outlook in the next five years

Shaimaa Al-Aees
Last updated: 2019/10/20 at 10:27 PM
By Shaimaa Al-Aees 4 Min Read
Share
SHARE

Fitch Solutions expects that real GDP growth in Egypt will remain robust in the near future, hitting 5.5% in fiscal year (FY) 2019/20 – which began 1 July – only slightly below the 5.6% recorded in FY2018/2019.

“We note that this rate of expansion would be well above the 3.6% average recorded over the past decade and that it would also make Egypt a clear regional outperformer, given that our forecast for the Middle East and North Africa (MENA) weighted average growth stands at only 1.8% in 2019-2020,” Fitch Solutions added.

In its report Egypt Country Risk Report Q4 2019, Fitch said that Egypt’s investment will remain the largest contributor to growth this fiscal year, driven by fast-rising public spending on capital projects.

Fitch also expects that private consumption growth to remain on a slow uptrend owing to wage increases and falling inflation. Additionally, deteriorating global financial conditions could negatively impact Egypt’s access to foreign capital and dent economic growth.

The report explained that Egypt’s robust growth could still face headwinds from a deteriorating global macro outlook. “A more pronounced slowdown in global growth than we currently forecasted would weigh on Egypt’s economic outlook as well,” the report added.

Accordingly, external debt would become more costly to source as capital flows into emerging markets reverse, especially since the government is not intending to lean on IMF funding in FY2019/2020. This would put pressure on short-term public investment spending, thus clipping a central growth driver.

According to Fitch Solutions’ expectation to Egypt’s local currency, the report expects that the Egyptian pound will maintain a slow appreciatory trajectory against the US dollar over the remaining months of 2019 owing to an attractive carry rate.

The report pointed out that non-oil exports would also suffer, as would remittances from Egypt’s foreign workers to some extent. Egypt still has a large growth buffer – that is, it would be far less likely to slip into recession in a global downturn – compared with some other major emerging markets leaving more room to absorb the shock of a potentially deep global slowdown.

Furthermore, Fitch highlighted that investment will contribute most to growth this fiscal year. The government is pressing ahead with capital investments at a rapid pace, using newly gained resources unlocked by fiscal reforms and spurred on by a large structural infrastructure deficit (see ‘Egypt Infrastructure Report Q3 2019’, June 12).

Government capital expenditure rose by 30.0% YoY in real terms in July 2018 to May 2019, up from 10.3% YoY in the preceding period. Accordingly, our Infrastructure team forecasts the construction industry to grow by an annual average of 10.3% in 2019-2020, the second-highest rate in the region, according to Fitch.

The report said, “Egypt currently has some $31bn worth of projects under construction, driven by the energy and transport sectors as well as residential, industrial, and commercial projects in new cities. Moreover, the projects are currently in the planning stages and are valued at a staggering $157bn, equivalent to 51.4% of GDP – both the highest rates in the MENA region. While the realisation of this pipeline will depend on many factors -such as financing and market conditions. We are confident about Egypt’s investment outlook in the next five years and expect it to be a significant driver of real GDP growth.”

You Might Also Like

Mountain View Sets New Standards for Life Experiences Built On the Science of Happiness at iCity

Egypt’s Emigration Minister meets with founding board of Egyptians Abroad for Investment Company

ABB allocates €13bn for green transformation by 2030

DMZ Cairo Demo Day 2023 showcases Egypt’s top tech startups

Valu partners with Le Marche, Electrotech to offer payment solutions for furniture, electronics Expo

TAGGED: Egypt, Fitch Solutions, Investment
Share this Article
Facebook Twitter Email Print
Previous Article A general view of the Egyptian Exchange (EGX) in Cairo August 18, 2013. Egypt's stock market fell sharply on Sunday as it resumed trading after hundreds of people were killed in a crackdown by the army-backed government on supporters of the Muslim Brotherhood. Banks and the stock market reopened for the first time since Wednesday's carnage, with shares rapidly falling 2.5 percent. Real estate stocks take the spotlight, boosting EGX trading this week 
Next Article Kuwait’s PM on a three-day visit to Cairo to meet Al-Sisi, Madbouly 
Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
CCCPA, African Union train officials on ‘Climate Responsive Programming for Sustaining Peace’
Politics
Mountain View Sets New Standards for Life Experiences Built On the Science of Happiness at iCity
Real Estate
Egypt's Emigration Minister meets with founding board of Egyptians Abroad for Investment Company
Egypt’s Emigration Minister meets with founding board of Egyptians Abroad for Investment Company
Business
ABB allocates €13bn for green transformation by 2030
ABB allocates €13bn for green transformation by 2030
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?