HSBC SAYS EGYPT ECONOMY TO SHOW POSITIVE GROWTH
HSBC’s Global Asset Management Outlook for 2012 has revealed the bank’s optimism regarding emerging markets.
The bank has stated Egypt’s economy will show “positive growth” in 2012 after the revolution on January 25th 2011.
Despite problems last year for the global economy with the euro zone crisis and the Arab Spring, HSBC believes the economies facing these difficulties will turn into long-term goals for investors in 2012.
Yaser Gamali, head of HSBC Global Banking and Markets, commented: “HSBC Egypt expects to see growth strengthen in 2012. The fundamentals of the Egyptian market are strong with a favourable demographic profile, a diversified economy and a strategic geographic location.”
As Egypt’s political transition moves forward and security in the country improves, attitudes will become more positive and private sector investment should return.
Foreign investment is set to rise significantly in Egypt this year according to the report and international consumption is likely to pick up when the country’s political situation becomes clearer.
The news comes after the US agreeing to offer more Egyptian companies duty-free access to the American market to increase prosperity and employment.
The US revealed their goal is to help Egyptian businesses increase and diversify their exports to the United States by widening their Generalized System of Preferences (GSP) programme, which offers duty-free access to the US to Egyptian producers.
The news has impressed investors and support from the United States will certainly help Egypt reach its full economic potential.
The report from HSBC bank will certainly attract investors and shows there are lots of long-term investment opportunities in the country.
Source: The Daily News Egypt, Ahram Online