10 Things Goldman Sachs said about Egypt economy

The New York based investment banking giant released a report, cited by Ahram, hailing Egyptian economy as one of the strongest among emerging markets. Here are 10 reasons why...

1- Around $20 billion left Egypt with the breakout of the Coronavirus between March and June 2020, however $10 billion came back to the country through expat remittances.

2- Egypt’s interest rates and debt instrument proceeds were among the most attractive globally. Standing at 6.5 and 6.7 percent in Egypt respectively while the global percentage is about 1 or 0.5 in many countries. This makes Egypt very attractive for investors and supports its projections.

3- The CBE is expected to keep interests steady without cuts to main demand “on debt instrument investments” Ahram reported. However, the reported projected that CBE, on the long run will cut the rates by 4% to reach 2.5 percent.

4- CBE set the inflation rate limit at 9%, subject to increase or decrease by 3 percent. The report stated that CBE will be able to keep a balance between this limit and protecting foreign investments in the country.

5- In case inflation rates increase by 2% to stand at 4.5% the CBE will cut interests by 2%.

6- Inflation rate is expected to stand between 7 and 7.5% in the future.

7- The Egyptian pound will have an upward performance against the dollar without posing a risk to the competitiveness of Egyptian exports.

8- Tourism will make a comeback in Q3 of 2021 after suffering due to COVID-19 global pandemic.

9- Tourism makes up about 20% of Egypt’s economic activity.

10- Egypt’s performance was remarkable regarding its economic reform program that the country started in 2016.