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HSBC says 63% of Egyptian businesses are optimistic

HSBC says 63% of Egyptian businesses are optimistic

ArabFinance: The economic outlook for Egypt is supported by an ambitious domestic reform programme that is attracting growing inflows of foreign direct investment. Consumer confidence has improved with the moderation of inflation, while the exchange rate remains stable and supportive of trade.

Reflecting these trends, the HSBC Navigator survey reveals that three quarters of Egyptian firms are optimistic that their company will succeed in the current international trade environment.

What is happening now?

Egyptian businesses are slightly less optimistic than the global average

The Egyptian economy has maintained its upward momentum so far this year, as the government’s reform programme has attracted renewed foreign investment and helped to reinvigorate growth in exports. Natural gas extractions have also grown strongly due to a number of discoveries over the past few years and the sector’s ongoing development represents an upside risk to the outlook. But the economy also faces a number of challenges, including high unemployment and the need to improve education levels. Egyptian businesses are slightly less optimistic in terms of the global trade environment than internationally: 63% of Egyptian respondents have a positive outlook on international trade compared to the global average of 78%. Nevertheless, three quarters of Egyptian firms are optimistic that their company will succeed in the current international trade environment. Focussing on markets where businesses are looking to expand (Fig. 1), Saudi Arabia and the UAE were most frequently identified, which likely reflects both Egypt’s geographic proximity and the lucrative opportunities available within these markets.

To read the full report of HSBC autumn poll on Egypt report click Here.

 

 

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