Egypt’s Minister of Planning Ashraf El Araby said the country needs an economic revolution in order to recover from the repercussions of political turmoil and to lure foreign investments worth billions of dollar to improve its financial conditions.
The minister forecasted foreign direct investments (FDI) to hit not less than $8 billion this fiscal year. He also expected economic growth rate of not less than 3% during the first quarter and 3.2% during the full year.
During Reuters Middle East Investment Summit, El Araby said Arab and GCC investments would be injected into Egypt’s economy over the coming period, expecting these investments to be announced during Egypt’s economic summit scheduled for next February.
The economy of the most populous country in the Arab World has been battered since the popular uprising that ousted former president Hosni Mubarak.
Despite the deterioration of the Egyptian economy during the last three years, recent reports signaled a gradual recovery in the economy.
Moody's, the global rating agency, has changed Egypt's credit rating outlook to Stable from Negative on Monday, maintaining the government bond rating at ‘Caa1’.
The agency cited a more stable political and security situation and signs of economic recovery. Moody's said government initiatives and reforms launched over the past year, including plans to phase out fuel and electricity subsidies, and measures to lift public revenues by a shifting to value-added tax system from a goods and services tax, had improved the outlook. The agency added that the upgrade to the credit outlook may help restore confidence in an economy hammered by political turmoil that has weighed on investment and tourism for nearly four years. Egypt's economy grew by 3.7% year-on-year in the fourth quarter, rising from 2.5% in the previous quarter. Moody's said local investors are showing confidence in the economic recovery of Egypt, adding that strong demand from the recent $8.5 billion issue of Suez Canal investment certificates to retail investors was testament to investor confidence.
The minister forecasted foreign direct investments (FDI) to hit not less than $8 billion this fiscal year. He also expected economic growth rate of not less than 3% during the first quarter and 3.2% during the full year.
During Reuters Middle East Investment Summit, El Araby said Arab and GCC investments would be injected into Egypt’s economy over the coming period, expecting these investments to be announced during Egypt’s economic summit scheduled for next February.
The economy of the most populous country in the Arab World has been battered since the popular uprising that ousted former president Hosni Mubarak.
Despite the deterioration of the Egyptian economy during the last three years, recent reports signaled a gradual recovery in the economy.
Moody's, the global rating agency, has changed Egypt's credit rating outlook to Stable from Negative on Monday, maintaining the government bond rating at ‘Caa1’.
The agency cited a more stable political and security situation and signs of economic recovery. Moody's said government initiatives and reforms launched over the past year, including plans to phase out fuel and electricity subsidies, and measures to lift public revenues by a shifting to value-added tax system from a goods and services tax, had improved the outlook. The agency added that the upgrade to the credit outlook may help restore confidence in an economy hammered by political turmoil that has weighed on investment and tourism for nearly four years. Egypt's economy grew by 3.7% year-on-year in the fourth quarter, rising from 2.5% in the previous quarter. Moody's said local investors are showing confidence in the economic recovery of Egypt, adding that strong demand from the recent $8.5 billion issue of Suez Canal investment certificates to retail investors was testament to investor confidence.
Source:
Mubasher
