The Centre for Economic and Business Research (Cebr) indicated that the Egyptian economy is expected to break into the top 30 in the world, projected to reach 22nd with its gross domestic product (GDP) rising to $1.069tn by the year 2028.
“Provided political stability re-emerges, favourable demographics should boost growth and lead to a recovery to the 22nd position by 2028,” Cebr said, as part of its analysis published in the World Economic League Table.
In 2013, Egypt held the 44th position. Cebr estimated that by 2023, Egypt will rise to the 28th position with a GDP of $667bn.
On 3 January, Fitch Ratings agency upgraded Egypt’s economic outlook from “negative” to “stable” for the first time since January 2011. The international rating agency noted that the change reflected its assessment of Egypt’s increasingly balanced economic risks.
The agency, however, maintained its long-term foreign and local currency sovereign credit rating of Egypt at B-.
In Cebr’s report on the performance of the Middle East during the fourth quarter of 2013, it pointed out that renewed political violence that followed the removal of former President Mohamed Morsi has heavily impacted on the country’s growth prospects.
“Although the stock market has been relatively buoyant following the announcement of financial support from several GCC countries, growth will be limited to 1.7% this year and just 2.6% in 2014 – far below the economy’s potential.”
Cebr has previously said that the population in Egypt is expected to continue to grow substantially, reaching 106 million in 2030, a growth of 31% from its current level.