In its annual report, HSBC said the interim period in Egypt is in advanced stages, which leads to more projections of improved economic performance over the coming period.
The bank expects Egypt’s GDP growth to reach 5% in the fiscal year 2015/2016.
Egypt’s Finance Minister Hany Kadry Dimian had revealed earlier that the country targets achieving 4.3% economic growth in the new fiscal year and it seeks to bring total deficit to between 9.5-10% and public debt to not higher than 91-92% of GDP.
The HSBC Egypt Purchasing Managers Index (PMI) for the non-oil private sector stood at 50.7 points in November, down from 51 points in October and a near-record 52.4 points in September.
Readings above 50 indicate expansion while those below 50 point to contraction.
"Another month with the PMI running above 50 provides further evidence that the Egyptian economy is stabilising," said Simon Williams, Chief Economist for the Middle East at HSBC.
"There are a raft of difficult policy issues still to address, but we continue to look for a pick-up in growth in the year ahead."
Egypt has undergone nearly four years of political and economic turmoil following the 2011 uprising that toppled Hosni Mubarak after 30 years in power.
The government is trying to strike a balance between cutting its deficit and reviving economic growth, which at 2.2 percent in the 2013/14 fiscal year remains too slow to create enough jobs for a youthful population of 87 million.
Egypt has received strong financial support from Saudi Arabia, the UAE and Kuwait that flushed the country with billions of dollars in aid following the ouster of Islamist president Mohamed Mursi in July, 2013.
Total GCC aid in oil products to Egypt amounted to nearly $6 billion since July 2013 till last May, according to Tarek El Molla, Head of Egyptian General Petroleum Corporation (EGPC).
Photo Credit: Arabianeye-Reuters
The bank expects Egypt’s GDP growth to reach 5% in the fiscal year 2015/2016.
Egypt’s Finance Minister Hany Kadry Dimian had revealed earlier that the country targets achieving 4.3% economic growth in the new fiscal year and it seeks to bring total deficit to between 9.5-10% and public debt to not higher than 91-92% of GDP.
The HSBC Egypt Purchasing Managers Index (PMI) for the non-oil private sector stood at 50.7 points in November, down from 51 points in October and a near-record 52.4 points in September.
Readings above 50 indicate expansion while those below 50 point to contraction.
"Another month with the PMI running above 50 provides further evidence that the Egyptian economy is stabilising," said Simon Williams, Chief Economist for the Middle East at HSBC.
"There are a raft of difficult policy issues still to address, but we continue to look for a pick-up in growth in the year ahead."
Egypt has undergone nearly four years of political and economic turmoil following the 2011 uprising that toppled Hosni Mubarak after 30 years in power.
The government is trying to strike a balance between cutting its deficit and reviving economic growth, which at 2.2 percent in the 2013/14 fiscal year remains too slow to create enough jobs for a youthful population of 87 million.
Egypt has received strong financial support from Saudi Arabia, the UAE and Kuwait that flushed the country with billions of dollars in aid following the ouster of Islamist president Mohamed Mursi in July, 2013.
Total GCC aid in oil products to Egypt amounted to nearly $6 billion since July 2013 till last May, according to Tarek El Molla, Head of Egyptian General Petroleum Corporation (EGPC).
Photo Credit: Arabianeye-Reuters
Source:
Mubasher
