Cairo – Mubasher: UBS Wealth Management's Chief Investment Office (CIO) has set Egypt’s credit outlook at “Stable”, based on the country’s population growth, current reforms, and a resilient “global backdrop”, a report stated on Tuesday.
"From a longer-term perspective, the report indicates that the growth potential of Egypt and many African countries continues to be substantial, supported by drivers such as population growth, urbanisation, and a rising middle class,” head of Central and Eastern Europe, Middle East and Africa, France and Belgium International at UBS Wealth Management Ali Janoudi stated in a press release.
However, Egypt’s chronic high youth unemployment rate continues to be a risk to economic growth.
"We believe the Egyptian economy can sustainably expand at an annual growth rate of 5% to 6%. […] Despite recent progress, including a successful IMF programme as well as the issuance of new Eurobonds, more work needs to be done to unleash the country's full potential,” head of Emerging Market Asset Allocation at UBS Wealth Management's CIO Michael Bolliger added.
Janoudi concluded that the country’s efforts to “improve the nation's business environment and enhance the credibility of its economic policy will prove decisive for its sovereign credit profile”.
