CAIRO: Egypt can continue its impressive economic growth rates of 6-7 percent for the next 10 years, a top financial analyst predicts.
Jean-Paul Betbeze, chief economist and head of economic research at Crédit Agricole, said that Egypt is enjoying a “fantastic moment due to its commitment to fiscal reforms, which have enabled the country to attract significant foreign direct investment (FDI).
Betbeze was speaking to a crowd of bankers and high net-worth individuals at Cairo’s Four Seasons Nile Plaza on Tuesday.
He spoke specifically of Egypt’s agricultural sector, saying that “this industry can be very modern and efficient in its GDP contribution, but it needs excellent roads and water supply.
“If you have the infrastructure in place, you can have perfect soft commodities at high value, he said.
Another key attribute for Egypt is its geographic location. In addition, developing regional relations -referring to the increasing need for cooperation between Europe and the Middle East – would place the nation at the forefront, he added. Achieving this would demand the leadership of a large country – like Egypt – with a strong economy, he explained.
At the same time, he pointed out that soaring inflation poses a great danger to the economic performance, and that it would be imperative to gradually strengthen the currency.
“It’s important to have a strong currency, which does not affect exports, but it helps to support the economic growth. It’s also useful to stop inflation without hiking interest rates too much, he said.
Betbeze gave a presentation about the state of the global economy, describing it as “not good, but there is a lot to be done right now.
He said that the US is facing a recession because of the domino effect the US housing crisis had on the financial markets, combined with a weakening dollar, which spilled over the Atlantic and started an economic slow-down in Euroland.
Emerging markets such as China, India, Brazil and many Middle Eastern nations have performed very strongly, however, which gave a mixed picture of the overall analysis.
“Although the current situation is difficult for the US, they will find a solution, he concluded, “and the rest of the world will need reforms and new inventions and co-operations to continue its growth.
