Invest in Egypt

"Egypt is set to be within the top 10 economies by 2030" SCB 2019

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Primary economic indicators | Invest in Egypt

April 29, 2024

Expected GDP

%

Annual head line Inflation

Population in Millions

Exchange Rate EGP/USD

2019 increase in GDP 5.8% 5.8%

2018 increase in GDP 5.2% 5.2%

2019 Inflation 9.2% 9.2%

2018 Inflation 14.5% 14.5%

2019 Population 99 %million% 99 %million%

2018 Population 97 %million% 97 %million%

* Information updates about invest in Egypt are on a monthly basis and by the officially declared by the CBE, the CAPMAS and WB.

MENA STARTUPS MAP

MENA startups funding 2019,

Total of 564 deals.

A total of 704 million USD,

Led by Egypt in the number of deals and UAE lead by volume.

* As per startup platform Magnitt’s, MENA Venture Investment Report 2019.

Egypt 25% 25%
United Arab Emirates UAE 25% 25%
Saudi Arabia KSA 12% 12%
Lebanon 8% 8%
Jordan 6% 6%

Achievements and Vision

Egypt has a persistent economic growth measured by GDP growth rate for the last 4 years 2016-17-18-19, despite the pandemic impact on the economy, it has an expected GDP growth of 3.5% for the year 2020 as declared by dr. Hala El-Saeed minister of planning and economic development. One of the highest in the region and in emerging markets globally. Thats wht it time to invest in Egypt.

Egypt GDP Growth rate for the years 2017-18-19 was 5%, 5.2%, 5.8% respectively

Egypt GDP

Average global rates are 3.15%, 3.2%, 3%
As per The World bank outlook, Egypt 2018/2019.
As per the Central Bank of Egypt, the 5.2% increase in 2017-2018 should persist if not increased throughout 2019, Actual 2018 is 5.4% as per the latest declaration from Mr Mostafa Madbouli PM of Egypt in Davos convention January 2019, expected to rise to 5.8% in 2019.
Forward-looking, Standard Chartered’s bank forecasts see Egypt overtaking Russia, Germany and Japan to be the 7th biggest economy globally by 2030.

The Increase in the Purchasing Power of households as measured by the PPP (Purchasing Power Parity) due to a steady increase in household income from 2013 as per the World Economic Forum, as well as the relative current stability of inflation in the 15% rate expected to reduce to 10% during 2019/2020, consensus of analysts and down from 23%+ in 2016/17. The CBE is targeting single-digit inflation by the 4th quarter of 2019 and through 2020.

The latest increase in the petrol prices in July 2019 had a slite impact on inflation as per the CBE latest press release inflation of June 2019 is 9.37%. Adding the strengthening of the Egyptian pound against the USD by a close to 6.5% since the beginning of the year.

Household expenditure will be affected by a decrease of 5% on average (consensus).

Obstructed by tight monetary policy, the interest rate in 2016, 2017 and 2018, average 20%, 18% and 14% in the same order, which is due to more loosening in the coming year 2019 as per The CBE website (Central Bank of Egypt). It is another indicator of the increase in future household expenditure. The top richest 10% of the population are responsible for an average of 25% of the total expenditure.

The country is politically stable since 2013 onwards. in fact, many reforms took place resulting in increased inflation above 23%, due to floating the Egyptian pound in 2016 and reducing the government subsidized oil prices over 2016/17, yet the wider range of the population agreed with the consensus of analysts that these reforms were necessary for freeing the economy and increase the competitiveness of the country according to the 2030 Egypt plan. Resulting in a steady increase in GDP in the followed years 2017 and 2018, consecutively, 4.2% and 5.4%, expected to rise to 5.8% in 2019. Strengthen by loosening monetary policy projections and Inflation within central bank limits.

Egypt Vision 2030

Egypt’s 2030 vision plans to develop a competitive, balanced and diversified economy. Supporting innovation and knowledge, social justice, economic development, and the environment. GAFI

Useful Links

General Authority of Investment and Free Zones:

https://gafi.gov.eg/English/Pages/default.aspx

Ministry of International cooperation:

https://www.sis.gov.eg/Story/71377/Ministry-of-International-Cooperation?lang=en-us

The Central Bank of Egypt:

https://www.cbe.org.eg/en/Pages/default.aspx

The Ministry of Planning and Economic Development:

https://mped.gov.eg/

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