Gaza on verge of famine as war escalates, ceasefire talks stall    Gaza crisis, trade on agenda as Trump hosts Starmer in Scotland    Obama calls for aid access to Gaza, says 'no justification' for withholding food    Egyptian president follows up on initiatives to counter extremist thought    Egypt's SCZONE eyes deeper investment, port digitalisation ties with Singapore    Egypt's gold prices slip slightly on July 28th    Egypt's Housing Min. reviews HDP marketing plan    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egypt, South Africa pledge to deepen development cooperation at G20 meeting    Egypt's PM orders road maintenance review, tougher penalties to curb accidents    Egypt, Novartis explore expanding collaboration in oncology, cardiology    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Midar partners with Adeer to develop Boulevard project in Mostakbal City with EGP 70bn investment    Association of Real Estate Developers seeks urgent meeting over threatened land deallocation on Northwest Coast    Culture minister launches national plan to revive film industry, modernise cinematic assets    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    I won't trade my identity to please market: Douzi    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt required to double efforts to keep positive economic outlook: IMF
Growth is better, but still needs structural reforms, says Maurice Obstfeld
Published in Daily News Egypt on 11 - 11 - 2018

Maurice Obstfeld, the IMF's chief economist, said that Egyptian authorities are required to double their efforts to keep the positive economic outlook, noting, "Egypt's growth is doing better, but again there is a need for structural reforms,"
Obstfeld remarked during his speech in the event which was organized by AmCham Egypt on Thursday, that since the beginning of the fund programme in Egypt, the negative outlook shrank to zero, employment rates are declining, GDP is rising to over 5%, and international reserves are healthy, adding that inflation rates and macroeconomic indicators are showing robust signs.
Debt levels, interest rates, structural reforms
"Egypt's debts levels are more than 90% of the GDP, which is still dangerous in the current environment, as interest rates are on the rise," said Obstfeld, affirming the importance of Egyptian authorities to implement the structural reforms and absorb youth into new industries.
Egypt's future efforts, in terms of structural reforms, will inspire growth and investments, added Obstfeld, noting that Egypt's economic growth is higher than the growth average of oil importers in the Middle East and North Africa and Pakistan (MENAP) region.
"There is an instant need for structural reforms in this area, particularly after the global trade issues," noted Obstfeld.
Moreover, Obstfeld said that Egypt's economy witnessed a very impressive declining inflation since the middle of 2017, when it reached less than 30% to the current figures now, adding, "One of the main objectives of Egypt's economic programme is to get the inflation rates down to single digits."
Generally, there is fear that energy prices' will increase, and will lead prices and core consumer price index (CPI) to also rise in advanced economies, said Obstfeld.
Global and regional outlook including China, GCC
Meanwhile, Obstfeld added that global growth is projected at 3.7% for 2018 and 2019, which is 0.2% point lower for both years than the past forecast in April 2018, adding that the trade tariffs conflict of China and the US affected the growth forecast.
Since January, a sequence of US tariff actions on solar panels, washing machines, steel, aluminium, and a range of Chinese products, plus retaliation by trading partners has complicated global trade relations, said the IMF's World Economic Outlook (WEO) report in October.
The downward revision reflects surprises that suppressed activity in early 2018 in some major advanced economies, the negative effects of the trade measures, as well as a weaker outlook for some key emerging market (EM)mand developing economies arising from country-specific factors, tighter financial conditions, geopolitical tensions, and higher oil import bills, elaborated Obstfeld .
"For the MENAP region, generally, we see that our economic performance and growth projections are improving somehow, only dramatically outperformed by the Gulf Cooperation Council (GCC) in 2017," said Obstfeld.
Obstfeld added GCC's long term growth face some structural challenges, which are considered major issues for the GCC countries as well as youth employment issues.
For his part, Reza Bakir, senior resident representative of the IMF in Egypt, said that IMF has inaugurated its office in Egypt one year ago, adding, "since then AmCham Egypt has been a good friend, we are happy today that we have made available to you our senior officials such as Dr. Obstfeld to reveal the WEO as well as the regional outlook including Egypt."
Bakir noted that Egypt's economic development has two pillars, which are the macroeconomic stabilisation and the structural reforms, mentioning that the Egyptian markets need at least 700,000 jobs opportunities, which require many reform measures, including easier procedures for getting industrial lands for example.
AmCham Egypt Views, activities
Additionally, Executive Vice President of AmCham Egypt, Ahmed Abou Ali, said that Egypt is continuing its successful programme with the IMF, adding that the budget deficit is narrowing, GDP growth is improving, tourism is recovering, and natural gas production is increasing.
Moreover, Sylvia Menassa, CEO of the Amcham Egypt, said that AmCham hosted a major US business mission to Egypt, in coordination with US Chamber Of Commerce and the US Egypt Business Councils in October.
"We hosted more than 110 leading business figures representing 45 US companies," added Menassa, noting that the past business mission expressed their optimism of the country's future.
Past business missions had a very encouraging meeting with President Abdel Fattah Al-Sisi. They included several numbers of high-level panel discussions which were held, adding, "these events were attended by about 2,500 officials and senior business community representatives."
Menassa said that AmCham Egypt will organise a visit of American social media influencers and bloggers to Egypt on November 12, where the delegation will receive a comprehensive tour to Cairo, Luxor and El-Gouna for the first time.
The aim of the visit is to change Egypt's perception abroad, added Menassa, affirming the close cooperation with Egypt's Ministry of Tourism in organising the visit.


Clic here to read the story from its source.