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Egypt among world’s top 10 economies by 2030 – Standard Chartered

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FILE- Britain’s Standard Chartered Bank

LONDON, 8 Jan 2019: Britain’s Standard Chartered Bank forecast that Egypt will be ranked 7th among the world’s top 10 economies by 2030.

Seven of the world’s top 10 economies by 2030 will likely be current emerging markets, Bloomberg reported Tuesday, citing a note by Standard Chartered Plc.

The prediction for a shake-up of the world’s gross domestic product rankings comes in new long-term forecasts by Standard Chartered Plc, which includes a projection for China to become the largest economy by 2020, using purchasing power parity exchange rates and nominal GDP.

India will likely be larger than the US in the same time period while Indonesia will break into the top 5 economies.

“Our long-term growth forecasts are underpinned by one key principle: countries’ share of world GDP should eventually converge with their share of the world’s population, driven by the convergence of per-capita GDP between advanced and emerging economies,” Standard Chartered economists led by David Mann wrote in a note.

They project trend growth for India to accelerate to 7.8 percent by the 2020s while China’s will moderate to 5 percent by 2030 reflecting a natural slowdown given the economy’s size.

Asia’s share of global GDP, which rose to 28 percent last year from 20 percent in 2010, will likely reach 35 percent by 2030 — matching that of the euro area and US combined.

– EGYPT TODAY

Economy

Swiss foreign direct investment in Egypt records $1.6B

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CAIRO – 25 March 2019: The Swiss foreign direct investment in Egypt reached $1.6 billion, marking an increase of $400 million during the last two years, according to Minister of Investment Sahar Nasr.

Nasr added that the Swiss investments take place in the fields of industry, energy, pharmaceuticals, financial services and food.

The minister also referred to the cooperation between Egypt and Switzerland in implementing development projects at an amount of CHF 330 million (LE 5.7 billion), and in supporting new projects which focus on economic sustainable growth and creating job opportunities through the cooperation strategy until2020 at CHF 86 million (LE 1.5 billion).

She elaborated that Egypt is not only the gate of Switzerland to Africa but also to the Middle East, expressing Egypt’s aspiration to cooperate with Switzerland in Africa, in light of Egypt’s Presidency of the African Union during the current year.

This came during the celebration of 110 years of economic and trade relationships between Egypt and Switzerland, in the presence of Egypt’s minister of investment and Swiss Foreign Minister Ignazio Cassis, who is currently visiting Egypt and Swiss Ambassador to Egypt Paul Garnier.

For his part, Cassis pointed out to the importance of enhancing the economic relations and increasing mutual investments and projects between both countries, affirming that Egypt is the gate of Swiss investments to African markets.

He also referred to the cooperation between both countries in the fields of education, industry and transportation, stressing his country’s keenness on the human element especially in the education field.

Cassis noted that this event comes in conjunction with the celebration of 110 years of Egyptian-Swiss economic relationships.

– EGYPT TODAY

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Economy

Tax reform, digitisation key to financing development

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This year’s Economic Report on Africa, a flagship publication of the United Nations Economic Commission for Africa (ECA) focuses on fiscal policy.

MARRAKESH, Morocco, March 24, 2019/ — Africa must digitise its economies, broaden its tax base, prevent further deterioration of fiscal and debt positions, and aim for double-digit growth to achieve the UN 2030 global goals (SDGs), and the AU Agenda 2063 according to the 2019 Economic Report on Africa released today at the Conference of Ministers.

This year’s Economic Report on Africa, a flagship publication of the United Nations Economic Commission for Africa (ECA) focuses on fiscal policy. Government revenues account for 21.4%, insufficient to meet countries’ development financing needs.

“The Report identifies several quick wins in Africa’s pursuit of additional fiscal space to finance its accelerated development,” Vera Songwe, the ECA’s Executive Secretary stated at the launch. “[It also] focuses on the instrumental role of fiscal policy in crowding-in investment and creating adequate fiscal space for social policy, including supporting women and youth-led small and medium enterprises.”

But, a decade away from the SDG, she added that “African countries continue to search for policy mixes to help accelerate the achievement of the SDGs. However, for many countries, financing remains the biggest bottleneck with implementing capacity a close second.”

While analysing and highlighting both challenges and opportunities, the Report also recommends comprehensive macroeconomic reforms aimed at building financial resilience, placing emphasis on the need for Africa to accelerate growth to double digits by 2030 and to boost investment from its current 25 per cent of GDP.

While economic growth in Africa remained moderate at 3.2 per cent in 2018 – due to  “solid global growth, a moderate increase in commodity prices and favourable domestic conditions”, the Report emphasises that Africa needs to to do more, and work towards achieving a fine balance between raising revenue and incentivizing investments, in order to boost growth.

In some of Africa’s largest economies—South Africa, Angola and Nigeria – the Report reveals, growth trended upwards but remains vulnerable to shifts in commodity prices. East Africa remains the fastest growing, at 6.1 per cent in 2017 and 6.2 per cent in 2018, while in West Africa, the economy expanded by 3.2 per cent in 2018, up from 2.4 per cent in 2017. Central, North and Southern Africa’s economies grew at a slower pace in 2018 compared to 2017.

On the issue of Africa’s debt burden, the Report reveals that debt levels remained high as African countries increased their borrowing, to ease fiscal pressures most of which have been precipitated by the narrowing of revenue streams that has gone on since the commodity price shocks of 2014.

It argues that African countries can increase government revenue by 12–20 per cent of GDP by adopting a policy framework that strengthen revenue mobilisation, including through digitalising African economies stating that digitization could enhance revenue mobilization by up to 6 per cent.

“Digital identification can broaden the tax base by making it easier to identify and track taxpayers and helping taxpayers meet their tax obligations. By improving tax assessments and administration, it enhances the government’s capacity to mobilize additional resources. Digital ID systems yield gains in efficiency and convenience that could result in savings to taxpayers and government of up to $50 billion a year by 2020.”

 

United Nations Economic Commission for Africa (ECA).

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Economy

Egypt, Romania sign 3 MoUs, co-op protocols

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PRESS: (L) Romanian Minister of Business Environment, Trade and Entrepreneurship Ștefan-Radu Oprea, (R) Minister of Investment and International cooperation Sahar Nasr

CAIRO – 1 March 2019: Egypt and Romania signed on Friday three Memorandums of Understanding (MoU) to boost cooperation within fields of investment and entrepreneurship.

The agreements were signed between Egypt’s General Authority for Investment and Free Zones (GAFI) and Romania’s Ministry of Business Environment, Trade and Entrepreneurship, on the sidelines of the joint Egyptian-Romanian committee for economic cooperation.

The signing ceremony was attended by Minister of Investment and International cooperation Sahar Nasr and Romanian Minister of Business Environment, Trade and Entrepreneurship Ștefan-Radu Oprea.

The second agreement was inked on markets cooperation, through supporting and facilitating the injection of investments and establishing partnerships.

A Friday statement by the Ministry of Investment said the meeting also included talks on means of fostering bilateral cooperation in several areas, notably investment, trade, industry, the public business sector, electricity, oil and natural gas, agriculture, communications as well as tourism.

Meanwhile, the two ministers signed a cooperation protocol to probe investment opportunities by the Romanian business council at the Suez Canal Economic Zone (SCZone).

For his part, Oprea said Romania considers Egypt as its investment and trade gateway for Africa, while Cairo sees Bucharest as its investment and trade gateway for Eastern Europe.

The Romanian government seeks to expand in joint projects implemented by the public and private sectors in the fields of infrastructure and energy, he added.

– EGYPT TODAY

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