Egypt's FEC, TRAIN partner to support food exporters    Spot Gold, futures slips on Thursday, July 17th    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Egypt, Oman discuss environmental cooperation    Egypt's Environment Minister attends AMCEN conference in Nairobi    At London 'Egypt Day', Finance Minister outlines pro-investment policies    Sukari Gold Mine showcases successful public–private partnership: Minister of Petroleum    Egypt's FRA chief vows to reform business environment to boost investor confidence    Egyptian, Belarusian officials discuss drug registration, market access    Syria says it will defend its territory after Israeli strikes in Suwayda    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Sri Lanka's expat remittances up in June '25    EU–US trade talks enter 'decisive phase', German politician says    Egypt's Health Min. discusses drug localisation with Sandoz    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    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    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    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    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    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.



Investment growth down to zero across EM: IIF
While Turkey, Argentina, and Mexico experience pronounced weakness, Egypt's FDIs hiked 5% during 2019 on YoY, according to Minister of Planning
Published in Daily News Egypt on 01 - 02 - 2020

Across all emerging markets (EM), excluding China, investment growth is down to zero, according to the Institute of International Finance (IIF).
The IIF looked across all major EM to see where the investment slump is most pronounced, by calculating the contribution of gross fixed capital formation to year -over-year (YoY) GDP growth.
It found out that Turkey and Argentina are at the extreme weak end of the spectrum, describing it as "not surprising," given difficult external funding pictures.
"What is more surprising is that Mexico is also seeing pronounced weakness, along with a number of other key EMs, including Brazil, India, and South Africa," the IIF said.
The IIF attributed the growth slump to weak investment in crisis economies like Argentina and Turkey, where BoP's sudden stops sharply curtail investment, and to "secular stagnation" cases like Mexico and South Africa, where weak investment
has been part of a slowing growth trend for some time.
The report said that this investment slump carries the risk of turning a difficult few years into a more structural slowdown.
Despite the drop in the EM`s investment growth, and according to the latest investment trends reports issued by the United Nations Trade and Development Organisation (UNCTAD), Egypt still maintains its position as the largest recipient of foreign direct investment (FDI) in Africa.
According to the UNCTAD, new foreign direct investments remained concentrated in the gas and oil sector, along with significant investments in telecommunications, real estate, and tourism sectors.
Moreover, Minister of Planning Hala Al-Saeed said Thursday that the state's FDIs hiked 5% during 2019 YoY, reaching $8.5 bn.
Going back to the IIF, it said the bulk of EM are experiencing a protracted growth slump, stating that excluding China, and India, arguably outliers due to their large populations and economic heft, EM have not materially outgrown advanced economies since 2013, something that is called "secular stagnation" in EM.
There's a growing debate around the growth model across EM , a discussion that feeds off growing anxiety over automation, deglobalisation, and climate change.
The report explained that growth across most emerging markets has
not been materially above that in advanced economies since 2013.
Looking at YoY growth through Q3 2019, the IIF revealed that Brazil, Uruguay, Turkey, South Africa, Ecuador, Mexico, Saudi Arabia, and Argentina have failed to outperform developed markets.
Driving the EM slowdown are two distinct groups, with "crisis" EMs on the one hand, and genuine "secular stagnation" cases on the other. The first category includes Turkey, where the BoP "sudden stop" in 2018 caused
investment to contract sharply, while the second includes Mexico, where growth has been on a slowing trend for some time, with weak investment a key driver, according to the report.


Clic here to read the story from its source.