Foreign analysts: Tourism, the Suez Canal and energy support the Egyptian economy

William Jackson, an emerging market economist at Capital Economics, says that one of the fastest growing economies in the world, specifically in the Middle East and North Africa, with the fastest growth rate is Egypt.

The Egyptian government has made several economic changes in recent years that have helped in economic stability and attracted international investment.

Several comprehensive changes

The Egyptian government introduced several comprehensive changes in 2016 to reduce the budget deficit, enhance the business climate, and boost investment. These changes included reducing subsidies, devaluing the currency, and implementing a value-added tax.

The implementation of structural reforms, supported by the IMF program, and the shift to a permanently flexible exchange rate regime is expected to ease pressure on external financing and accelerate reforms.

  Jackson adds, Egypt succeeded in overcoming the negative impact of the outbreak of the Corona epidemic, as real GDP increased by 3.5% in 2020 and by another 3.3% in 2021.

In fact, Egypt is the only country in the MENA region that avoided negative GDP growth during the onset of the pandemic as the economy grew at a healthy 5% on average. as various economic reforms succeeded in supporting commercial investment and private consumption in the country, so after growing by about 6.6% in 2022, the Egyptian economy is expected to grow by another 4% this year.

Financial analyst Laline C. Delmando tells Global Property Finder that the housing market in Egypt continues to improve, amid strong economic growth. amid strong economic growth, coupled with the government's aggressive economic reforms in recent years, particularly the recent liberalization of foreign land ownership rules in the country, the nationwide real estate price index rose 28.4% in February 2023 over the previous year.

Annual increase

It is an acceleration from an annual increase of 7.2% in February 2022 However, when adjusted for inflation, real estate prices actually fell by a modest 2.6% over the same period amid rising inflation and real estate prices rose strongly by 25.4% during 2022 after a 3.6% annual rise % in 2021 and an annual decline of 9.6% in 2020.

President Abdel Fattah El-Sisi recently removed recent restrictions on foreign ownership of land and real estate in Egypt, in an effort to boost the housing market, and has also allowed the government to use its land for public-private partnership projects.

These improvements, along with fundamentally strong domestic demand, are starting to boost the housing market and the economy in general.