Last Update 22:25
Sunday, 18 August 2019

Egypt best reform story in emerging markets: Morgan Stanley report

Doaa A.Moneim , Friday 9 Aug 2019
Morgan
File photo: The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in the Manhattan borough of New York City, January 20, 2015. REUTERS
Share/Bookmark
Views: 4011
Share/Bookmark
Views: 4011

A new report by American investment bank Morgan Stanley has said that Egypt’s performance as an emerging market economy is the best globally, according to a statement on the report released by Egypt’s investment ministry.

The report, entitled Tales From the Emerging World, described Egypt as the “best reform story” in emerging markets, due to its having implemented a large number of economic reforms since 2016.

Egypt has created an investment environment friendly to the business community, Morgan Stanley’s head of Emerging Markets and Chief Global Strategist Ruchir Sharma said in the report.

There have been significant efforts to achieve financial inclusion, and the government has also succeeded in curbing the budget deficit.

Moreover, the floating of the pound in November 2016 has had a positive effect on increasing exports and the number of tourists in the country, Sharma said.

The country has attracted significant investment to its food industries sector, Sharma said, and a number of American technology companies have expanded their work in the market, with greater investments likely in the future.

In addition, there are many national mega-projects underway; 14 new cities and towns have been established and around 7,000km of new roads built, and the country’s New Administrative Capital is under construction, the report notes.

The country has decreased its reliance on oil and gas imports due to significant new investments in the energy sector, and is predicted to be getting 20 percent of its energy needs from renewable sources by 2020, with positive effects on the balance of payments.

Public debt has decreased from 108 percent of GDP to 88 percent, the report notes.

It added that consumption is no longer the growth leader as it was in 2015, as with the increasing rate of the Egyptian pound in 2019 and the full implementation of the economic reform program, consumption rates have begun to recover.

The report is “optimistic” about the future of Egypt’s economy beyond the reform phase, it noted.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.