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Daily News Egypt: Egypt’s long-term trade outlook positive despite current challenges

HSBC Egypt Trade report stated that China, India, and Bangladesh projected to be fastest growing export markets in 2021-2030.
22.12.16 | Interesting article at Daily News Egypt

Egypt’s long-term trade prospects are mostly positive due to several reasons, according to HSBC’s Egypt Trade report.

Reasons mentioned in the report included potential infrastructure developments; recent natural gas discoveries; the support of the International Monetary Fund (IMF) to Egypt’s economic reform programme; and foreign investment from Asia. This comes despite current challenges, such as global economic uncertainty, high security risks, political turmoil, fiscal constraints, and rising inflation due to the liberalisation of the exchange rate.

In regards to exports, the report forecasts that petroleum exports will remain key to export growth, despite the forecasted decline in its contribution to total exports from 22% in 2015 to 16% in 2021-2030. The decline is attributed to the possibility of an increase in natural gas production as a result to Eni and BP offshore investments, leading to a potential boost in GDP and export growth while easing electricity constraints and reducing the country’s import requirements.

Furthermore, the export of animal products are projected to contribute to 11% of the rise in exports between 2021-2030, while mineral manufacturing, chemicals, and plastics are forecasted to decline in terms of contributions to export growth in the same period.