HSBC expects Egypt to build on growth momentum in 2021

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·         HSBC economists provided their outlook on global and regional economies at an online event attended by 100 Egyptian clients

·         Egypt expected to grow by 2.5% in 2021, following 2.4% growth in 2020

Todd Wilcox, Deputy Chairman and CEO of HSBC Egypt

HSBC’s Global Economic Outlook virtual roadshow came to Egypt last week with 100 of HSBC’s clients attending the online event.

Simon Williams, Chief Economist for Central & Eastern Europe, Middle East and Africa (CEEMEA); Dominic Bunning, Senior FX Strategist; and James Pomeroyl, HSBC Global Economist Director, gave their views on the impact of COVID-19 on the global economy and explored various factors influencing macroeconomic trends, fiscal policy, as well as oil and foreign exchange markets. They also addressed the challenges and opportunities awaiting Egypt and the wider region in 2021.

The event was held at a critical time for the global economy, with countries around the world heading into the end of the year with increasing COVID-19 cases and global consumer confidence, which had shown signs of strengthening, starting to wane.

HSBC’s economists expect the Egyptian economy to grow 2.4% in 2020, compared to a global contraction of 4.1%. Egypt’s momentum should continue into 2021, with HSBC expecting a further 2.5% growth.

Todd Wilcox, Deputy Chairman and CEO, HSBC Egypt, said: “Egypt’s economy has stood out for its resilience throughout the COVID-19 pandemic, with its 2016 reform programme putting it in a position of strength as it entered the global crisis. As we look to build back with even more purpose than before, I am inspired by the ideas, entrepreneurialism and partnerships that are helping foster recovery and growth in Egypt and abroad.”

Simon Williams, HSBC’s Chief Economist for Central & Eastern Europe, Middle East and Africa (CEEMEA), said: “We remain hopeful that Egypt is through the worst of the downturn, and are confident that it can weather the pressures it will likely continue to face. To an extent, that optimism reflects the stability Egypt had established before the crisis hit, with the rebalancing delivered through the three-year IMF-anchored reform programme taking the fiscal and current account deficit and inflation lower, and reserves higher.”

The HSBC Global Economist Outlook roadshow is an annual event, which sees HSBC economists presenting in markets around the Middle East, North Africa and Turkey (MENAT), giving an update on their outlook on the global and regional economies.