Quoting a recent report by British multinational banking and financial services company headquartered in London Standard Chartered, the state-run Ahram newspaper in Egypt claimed that by 2030, Egypt would become the seventh largest economy in the world amd will go ahead of the likes of Russia, Japan and Germany.
“Egypt will likely be an emerging market as it will come in the seventh place out of ten by 2030,” Ahram raid quoting from the Standard Chartered report.,
The report claimed that the Egyptian economy would reach a volume of $8.2 trillion by 2030.
This was amongst the most striking analysis by the bank in its prediction about the world’s gross domestic product (GDP) rankings forecast for the long-term,. The report also noted that the Chinese economy would become the largest economy of the world by 2020 on the basis of the purchase power parity exchange rates and nominal GDP.
The report concluded the possibility of the Indian economy growing larger than that of the United States in the same period and the Indonesian economy finding its place amongst the top 5 ranked economies of the world.
“Our long-term growth forecasts are underpinned by one key principle which is the countries’ share of world GDP converged with their share of the world’s populations, driven by the convergence of per-capita GDP between advanced and emerging economies,” Standard Chartered economists David Mann wrote in a note.
On the other hand, the global banking body – the World Bank, said that it anticipates growth in the economies of the Middle East and North Africa region by 1.9 per cent and singling out Egypt to be the most important economy of the region with a potential growth rate of 5.6 per cent in 2019.
The ongoing economic reforms, increase in investments and the rates of private consumption formed the basis of the predictions of the World Bank.
A series of measures to stimulate economic reform in Egypt was initiated in late 2016 by the government there when, in an effort to manage the shortage of the U.S. dollars, the exchange rate of its local currency was started to be liberalized. The government also initiated strict austerity measures, tax hikes and subsidy cuts to increase investments and government earnings and reduce government spending.
As a reward for the economic reform measures undertaken by the Egyptian government, a 12-billion-dollar loan to support the reform was offered to the country by the International Monetary Fund (IMF). Two-thirds of that amount has already been delivered to the country.
According to the estimates of the IMF, in the 2017-18 fiscal year, the global agency expected the a growth of up to 5.2 per cent in Egypt’s economy compared to a growth rate of 4.2 per cent in the previous fiscal year. Egypt however clocked a bit more than that prediction. The IMF also expected Egypt’s growth for the current fiscal year of 2018-19 to reach about 5.5 per cent. Egypt’s fiscal year starts in July and ends of June.
(Adapted from XinhauNet.com)