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Wednesday, 23 October 2019

Egypt predicted to become world's 7th largest economy in 2030: Standard Chartered

Ahram Online , Thursday 10 Jan 2019
Views: 8154
Views: 8154

The Egyptian economy is expected to surpass some of the world's largest economies like Russia, Japan, and Germany by 2030 according to leading international bank Standard Chartered, Bloomberg reported.

"The long-term forecast by Standard Chartered, which focuses on markets in Asia, Africa and the Middle East sees Egypt in 7th place in a top 10, based on assessments of purchasing power parity (PPP) exchange rates, and nominal GDP," the report said.

"Even though the EGP is weaker now in terms of its exchange rate, by 2030, according to PPP theory, one EGP will be able to buy more of the same commodity than one Russian Ruble will, for example. It is, in that sense, likely that Egypt would see a reduction in prices, due to an increase in production. Counting on nominal GDP, rather than real GDP, the report does not account for inflation rates in each country respectively."

The 2030 list of the world's biggest economies is topped by China, with India at second place and the United States at third. Seven countries on the list are emerging markets.

In 2014, Egypt embarked on a plan to introduce a number of fiscal reforms, including fuel subsidy cuts, as well as imposing new taxes to ease a growing budget deficit.

A World Bank report last October expected economic growth in Egypt to reach 5.8 percent in 2020, driven by an economic reform programme that has seen the liberalisation of the exchange rate, the rationalisation of energy subsidies, and increased social protections for the poor.

The report, entitled 'A New Economy for the Middle East and North Africa,' said Egypt would outperform other oil-importers in the region, attributing its burst in growth to a recovery in consumption and private investment and a rebound in merchandise exports and tourism.

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