Egypt’s Economy Remain Steady in Emerging Markets: Goldman Sachs

Egypt’s Economy Remain Steady in Emerging Markets: Goldman Sachs
A man counts Egyptian pounds banknotes at a foreign currency exchange bureau in Cairo, Egypt, on Friday, Aug. 7, 2015. The Suez canal extension and other construction projects have boosted the economy, which grew above 4 percent in the nine months to March for the first time since 2010. Photographer: Shawn Baldwin/Bloomberg

A recent Goldman Sachs report reveals around half of the foreign investments that exited the Egyptian market amid the onset of the COVID-19 crisis has returned, with further inflows projected, Ahram Online reports.

Egypt’s economy still robust and is growing in a way that can make it the strongest among emerging markets, Goldman Sachs has said in a its report.

The report adds that Egypt has achieved remarkable success through its economic reform program initiated in November 2016.

Egypt’s real interest rate at 6.5% and debt instrument proceeds at 6.7%, are among the most attractive rates globally, where many counterpart countries record 1% and 0.5% respectively, enhancing foreign investor appetites as well as supporting projections of foreign investment inflows, according to the report.

Regarding the interest rates that will be reviewed by the Monetary Policy Committee (MPC) at the Central Bank of Egypt (CBE) on 24 September, Goldman Sachs expects the CBE to balance between the inflation rate limit set at 9% (plus or minus 3%), and protect foreign investment inflows.

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