CAIRO: Confidence amongst businesses in Egypt hit an all-time high, rising 47 points to 146 points and placing Egypt at the top of the 23 countries surveyed, according to Egypt’s Trade Confidence Index report issued Saturday by HSBC.
“The increase reflects improvement in the political situation, as well as the massive inflow of Gulf funds which has stabilized the financial climate (including the exchange rate) and bought the country time to implement structural economic reforms,” HSBC said in the report.
A rise in economic confidence, cited by around 40 percent of participants, was the leading reason for improved sentiment, according to the survey conducted by HSBC.
“Egypt’s strategic geographic location and open trade hub are the main drivers of the economy going forward,” Mona El-Sayed, head of Commercial Banking for HSBC Egypt said in a statement commenting on the survey.
She added that the remarkable improvement in the Egypt Trade Confidence Index and the country being the highest amongst countries surveyed across the globe “is a very positive indicator of the anticipated economic growth.”
“HSBC remains optimistic about Egypt’s long-term potential and the country continues to feature as one of the Bank’s key markets for focus and investment,” she said.
In the survey, Europe appeared as the most promising region for trade in the next 6 months. This was attributed to “the recovery in key European markets such as the U.K. and Germany, as well as Europe’s overall importance as a trade partner,” the statement read.
The survey also highlighted the MENA region as equally promising, citing solid growth prospects in the oil-exporting Gulf.
According to the twice yearly HSBC Global Connections Trade Forecast report, Asia is projected to be the fastest growing market for Egyptian exports up to 2030. New markets in Latin America and the MENA region are also expected to show relatively robust growth over the medium term.
By 2030, the top export destinations—reflecting their own rapid GDP growth and large domestic populations—will be India and China, HSBC concluded.