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Egypt’s growth rate continues upturn for 5th quarter in row: EBRD

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CAIRO – 13 November 2018: The European Bank for Reconstruction and Development (EBRD) reviewed the Egyptian economy in its latest report “Transition Report 2018/2019”, stating that growth continued to accelerate for the fifth consecutive quarter.

“It reached 5.3 percent year-on-year in the second quarter of fiscal year 2017/18, and an estimated 5.3 percent for the year, the highest rate in a decade,” the report said.

The report attributed the hike to manufacturing, trade, tourism and construction, in addition to the recovery in mining.

“In per capita US dollar terms, GDP shrank in fiscal year 2016-17, as a result of the currency depreciation and sustained population growth, and increased by 5.0 percent in fiscal year 2017-18,” the report read.

EBRD

Regarding Unemployment, the report said that the rate dropped for the seventh consecutive quarter but remained elevated at 9.9 percent in the second quarter of 2018, and higher among the youth (24.8 percent) and women (21.2 percent).

The report clarified that the continued moderation in the unemployment rate is mainly due to the bold reforms implemented in late 2016 and throughout 2017, which have boosted export-oriented businesses and improved the economic outlook.

“The government has also launched large construction projects that have generated many jobs,” the report stated.

The report also outlined inflation, noting that it declined from its record high level of 33.0 percent in July 2017 to 16.0 percent in September 2018.

“Meanwhile, in January 2018, the real interest rate turned positive for the first time in almost two years, and continued to increase, supported by the decline in inflation, despite the easing of monetary policy which started in February 2018,” according to the report.

EBRD said in its report that the fiscal and external positions have improved, stressing that the government achieved its first primary budget surplus in 15 years of 0.2 percent of GDP in fiscal year 2017-18, and the overall fiscal deficit narrowed to 9.8 percent of GDP (slightly below the target of 9.0 percent) from 10.9 percent in fiscal year 2016-17.

The report clarified that the deficit declined as a result of a contained wages bill and lower interest payments, coupled with a continued strong tax performance, despite increases in spending on subsidies and transfers.

“Gross public debt declined from 103 percent of GDP in fiscal year 2016/17 to 92.5 percent of GDP in fiscal year 2017/18,” the report noted.

It also pointed to the current account deficit which dropped from 6.1 percent of GDP in fiscal year 2016/17 to 2.8 percent in fiscal year 2017/18, as a result of the strong pick-up in tourism receipts, exports (oil, non-oil), Suez Canal revenues, and private transfers, notably remittances, which more than offset increases in imports.

It continued the review by saying, “In recent months, Egypt has stepped up external borrowing and shifted away from costly short-term domestic debt to rebuild foreign exchange reserves, and reduce crowding out of credit to the private sector.”

International reserves rebounded to surpass pre-2011 levels, reaching a record high of $44.5 billion in September 2018, and covering close to 7 months of imports, up from a critically low level of 3.1 months in June 2016, according to the report.

The bank expected GDP to grow to 5.5 percent in fiscal year 2018/19 and to 5.8 percent in fiscal year 2019/20.

It noted that this acceleration will be supported by the continued boost in confidence, recovery in tourism, an increase in foreign direct investment, improved competitiveness and continued strengthening of exports, the start of natural gas production from the Zohr field, as well as the implementation of business environment reforms and prudent macroeconomic policies.

The report also anticipated GDP to continue its growth in the short term in nominal dollar terms.

“The main risks to the outlook arise from a slow-down in reforms, and increases in global oil prices which would delay fiscal consolidation. These risks are mitigated by the authorities’ strong commitment to, and ownership of, the economic reform program,” the report explained.

According to the bank, “The Transition Report 2018-19” analyses the impact on work of demographic change, as well as automation and migration, both across national borders and within countries. The report includes a macroeconomic overview of the EBRD regions and of structural reforms in the past year.

Egypt embarked on a bold economic reform program that included the introduction of taxes, such as the value-added tax (VAT), and cutting energy subsidies, with the aim of trimming the budget deficit.

Egypt also provides facilities and legislative reforms to encourage investors to invest in Egypt.

The legislative and regulatory aspects include the issuance of several laws and regulations, namely the new investment law and its executive regulations; the law of restructuring and reconciliation, bankruptcy and postponement of financing and privatization; and the amendments of the law of companies and the capital market and their executive regulations.

The state also established the investors’ service center that provides services to aid in the procedures of establishing a firm, its contract, documentation, licensing and its commercial registration.

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“Committed to People, Committed to the Future” INFINIX CSR initiative during Ramadan.

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INFINIX  adopts a sense of community with empathetic and emotional communication that creates the traditional feeling of togetherness, companionship, and hope, despite social distancing.

As part of INFINIX  core values to localized development, which in its continuous and deep involvement with local economic and social development in major emerging markets and its focus on win-win cooperation with local people.

Believing that the profitable growth of our company depends on the education, environmental and social sustainability of our communities across the world. And we know it is in our most beneficial interests to contribute to the sustainability of those communities.

We are delighted to announce the “Committed to People, Committed to the Future” Corporate Social Responsibility campaign. Our most recent philanthropic activity will obtain the distribution of 1300 meals during Ramadan in upper Egypt.

This social Annual initiative is in collaboration with “Misr EL KHEIR “charity organization based in Egypt will be responsible for the distribution of 1300 boxes to support the needs of underprivileged families who struggle poverty in some counties in Upper Egypt.

Commenting on this latest initiative (Chris Xu ) “The holy month of Ramadan is all about giving and generosity. For this reason, Company carefully selected the activities and programs that most presented another value to all segments of society. Ramadan Mubarak to everyone!”

INFINIX will continue its “Committed to People, Committed to the Future “CSR activities not only in philanthropy like Humanitarian initiatives and Ramadan services and competitions but also in youth educational programs, sports sponsorship throughout 2021.

 

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Al-Futtaim’s Cairo Festival City Hosted Misr El-Kheir’s

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38 Fully-Loaded Trucks Food Convoys to 12 Underprivileged Governorates

Cairo Festival City (CFC) – one of Al-Futtaim Group Real Estates’ well-renowned landmarks in New Cairo – has proudly hosted the 2nd batch of Misr El-Kheir Foundation’s food convoys. The initiative is held under the patronage of the Ministry of Social Solidarity and in collaboration with the Ministry of Youth & Sports to launch 38 fully-loaded trucks carrying around 490 tons of food supplies to 12 underprovided governorates.

“Al-Futtaim Group Real Estate, hand in hand with the Ministries of Social Solidarity and Youth & Sports along with Misr El-Kheir Foundation, took pride in successfully launching the 2nd batch of food convoys from Cairo Festival City premises as part of Iftar Saem Campaign 2021. Assembling together the arms of Sustainable Development Golden Triangle, our joint philanthropic endeavor aimed at providing underprivileged villages and vicinities across Egypt with much-needed nutritional supplies.” said Managing Director of Al-Futtaim Group Real Estate, Eng. Ashraf Ezz El Din.

Ezz El Din added: “Building upon our long-witnessed CSR initiatives, Al-Futtaim Group Real Estate played a pivotal role in such humanitarian event by diligently equipping a slot at Cairo Festival City to properly & safely serve packaging practices; giving due concern to social distancing.”

About CFC:
Cairo Festival City is a pioneer of integrated mixed-use community developments that range from residential to commercial and entertainment apparent by how Cairo Festival City Mall is bordered by residential projects, managerial and administrative centers, and an international school. Cairo Festival City is experiencing a boom in construction rate (in cooperation with the largest contractors in Egypt) and is soon expected to be the pinnacle of integrated mixed-use community living by presenting the benefits of both luxury and practicality. Cairo Festival City is strategically located in the heart of New Cairo over 3 million sqm of land and is in close proximity to Maadi, Mokkatam, Heliopolis, and Nasr City. It is also a short, 15-minute drive away from the Cairo International Airport.

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Investments exceeding EGP 4 billion along 4 years:

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Investments exceeding EGP 4 billion along 4 years:
Living Yards Developments Egypt Partners with EFS Misr
to manage its facilities in the New Administrative Capital

– Marzouk: “Living Yards designated EFS Misr to manage and maintain 1,230 residential & administrative units within its projects; the total investment of such projects exceeds EGP 4 billion.”
– Mansour: “We are proud to have been chosen by Living Yards, and we promise to deliver world-class services; capitalizing on our 90+ projects experience in Egypt & the Middle East.”

Living Yards Developments Egypt has recently celebrated the signing of a memorandum of understanding with EFS Misr Facilities Service, at Living Yards’ headquarters in New Cairo, and in the presence of both corporate teams. This up-and-coming partnership culminates Living Yards’ latest remarkable successes in its New Capital real estate projects; being the first real estate developer to invest in this great national venture.

In this regard, Mr. Ayman Marzouk, Chairman and CEO of Living Yards gave a statement: “Out of keenness to provide our customers with top-class comfort, luxury & safety, and next to our deep-seated belief in specialization, Living Yards has assigned a facility service company to manage about 1,230 residential & administrative units in three of our major projects so far. The total investments in living yards projects exceeded EGP 4 billion. We have selected EFS Misr in particular on grounds of their reputable expertise in various projects over nearly two decades.”

On behalf of EFS Misr, Mr. Rami Mansour, Chairman & CEO made a comment: “We are proud collaborate with Living Yards, and cherish their confidence in our capabilities. We are also grateful for the opportunity to partake in such a mega urban development national project. We promise to deliver world-class services; capitalizing on our 90+ projects experience in Egypt & the Middle East. Our portfolio comprises of managing facilities in Master Communities, Healthcare, Oil and Gas, Banking, Industrial, Public Sector, Integrated workplaces, Education, Retail and Mixed -use properties. We look forward to further Collaboration with Living Yards in the future.”

About Living Yards Development:
Living Yards Developments is owned by two mega economic establishments; AM Group and Egyptian Swiss Group. With more than 30 years of expertise in the fields of manufacturing & trading, 3000 employees and annual turnover of more than 4 billion EGP, the two groups guarantee a very strong financial and technical support to the company. Living Yards Developments is entering the market with a new inspiring vision. Introducing a unique concept to the real estate market. ‘Practical Luxury’ is the mix of value for money with lavishness and diversity with luxury. A new trend setter in the market where compromises don’t exist. Living Yards is a grand addition to the world of real estate that subscribes to the mantra of thinking the unthinkable, with the sole purpose of satisfying the unmet needs of our customers, through applying a novel methodology in delivering all of its projects.
For further info, please visit: https://www.livingyardsegypt.com/

About EFS Misr:
Back in 2015, EFS Group in Dubai made a strategic decision to enter the Facility management local market in Egypt with the creation of an independent subsidiary, named EFS Misr. EFS Misr endeavors to deliver quality facility management and value-added in managing facilities in Master Communities, Healthcare, Oil and Gas, Banking, Industrial, Public Sector, Integrated workplaces, Education, Retail and Mixed -use properties.

For further info, please visit: http://www.efsmi.com/

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