Dubai PR Network, Online Press Release from Dubai and Middle East
 
Money, Business & Investments(Banking & Investments)
Filter PR by
  
UBS CIO: Egypt's economic growth could accelerate to 5 to 6 percent per year
 
  • Social factors will prove decisive for Egypt's development, according to the latest report by UBS Wealth Management's Chief Investment Office.
  • Encouraging economic prospects end years of deteriorating credit ratings across Africa, report finds.
Dubai, UAE, August 8, 2017:  UBS Wealth Management's Chief Investment Office (CIO) launched a new report on Africa's sovereign credit prospects, an important benchmark used to evaluate the risk of investing in a country. The report concludes that after years of deterioration, the credit outlook of many African sovereign issuers is stabilizing or improving. 
 
The report assigns a stable credit outlook to Egypt. Over the next five years, the country's population is expected to increase by more than 10 million according to the UN, which is likely to become a sound driver of economic growth if the right conditions are met. Current reforms and a buoyant global backdrop support the economy. Risks include the country's chronic high youth unemployment rate.
 
Across the continent, Africa’s sovereigns have been hit by a range of issues in recent years, including the end of the commodity super cycle, depreciating exchange rates and mounting public debt ratios. As a result, several sovereigns experienced multiple-notch downgrades. Downgrades send a negative signal about a country's economic prospects to investors.
 
According to the report's findings, however, macroeconomic prospects in the region are beginning to improve. The International Monetary Fund (IMF) forecasts real GDP growth to almost double this year in Sub-Saharan Africa, reaching 2.6 percent, while fiscal and current account deficits are expected to have peaked at 4.5 percent and 4 percent last year, respectively. Key drivers supporting the outlook include rising global growth and trade, a modest recovery in energy and base metal prices, more competitive exchange rates for African currencies, and structural reforms in a range of countries.
 
Ali Janoudi, Head of Central and Eastern Europe, Middle East and Africa, France and Belgium International at UBS Wealth Management, said: 'From a longer-term perspective, the report indicates that the growth potential of Egypt and many African countries continues to be substantial, supported by drivers such as population growth, urbanization, and a rising middle class. Egypt's efforts to improve the nation's business environment and enhance the credibility of its economic policy will prove decisive for its sovereign credit profile.'
 
Michael Bolliger, Head of Emerging Market Asset Allocation at UBS Wealth Management's CIO, said: 'We believe the Egyptian economy can sustainably expand at an annual growth rate of 5 to 6 percent. However, further reform progress is crucial and access to foreign funds is a key element in this process. Despite recent progress, including a successful IMF program as well as the issuance of new Eurobonds, more work needs to be done to unleash the country's full potential.'

Posted by : Dubai PR Network Editorial Team
Viewed 3489 times
PR Category : Banking & Investments
Posted on : Tuesday, August 8, 2017  2:45:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Credit FAQ Discusses Potential Implications Of Qatar Boycott...
Next Story : Barclays ‘Compass': Developed and Emerging Markets Equities ...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
SOUQ.com hosts two-day Samsung carnival with incredible offers on Mobiles, Wearables and A... [12328-Views]
Perfect Fragrances to Celebrate Eid [11096-Views]
100 New Ways to Transform Your Home With the New Ikea Catalogue [10797-Views]
A Post-Summer Pigmentation Saviour from MZ SKIN [9260-Views]
LG V30 to Elevate Smartphone Camera to New Heights [8936-Views]
Next Major Smartphone From LG to Feature First-Ever OLED FullVision Display [8766-Views]
GCC's premium home appliance market to thrive with LG SIGNATURE [8430-Views]
COÉGA Sunwear Launches Contemporary Autumn/Winter '17 Conservative Swimwear [7808-Views]
Michael Kors Debuts New Bancroft Handbag Collection [7497-Views]
Introducing the Fall 2017 GUESS Accessories Collection Advertising Campaign [6881-Views]
Eid Al Adha with Paule Ka Fall-Winter '17 [6576-Views]
Six Down, Two to Go - ADSB Keeps Up Pace in Delivering Ships to Kuwait [6515-Views]
International SOS and Control Risks Advise Pilgrims Worldwide Ahead of Hajj 2017 [6411-Views]
Global Jewellery Retail Chain Joyalukkas signs Award-Winning Bollywood Actress Kajol Devga... [5850-Views]
Patrimony Collection Excellence Platine [5722-Views]
ICONIC announces ICONIC KIDS- Born Different [5673-Views]
Highly Anticipated Audemars Piguet Royal Oak Extra-thin Arrives in the Middle East [5636-Views]
Emily Ratajkowski wears Salvatore Ferragamo eyewear [5582-Views]
UAE is likely to see increased cashless transactions by 2020: Xpress Money's Strategy & Di... [5338-Views]
Zenith Chronomaster El Primero Full Open [5179-Views]
New UAE Space Agency Board of Directors Holds First Meeting [5136-Views]
UAE Team Emirates to Make Vuelta a España Debut [5075-Views]
"WATHIQATI" Receives the highest number of documents since its launch from a Nat... [4825-Views]
Education in the UAE continues to cost families almost AED 1 million per child new insight... [4532-Views]
Dubai Land Department's ‘Ejari' smart application protects the right of all parties [4374-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories