Economic growth in eygpt Assignment Example | Topics and Well Written Essays - 500 words

Economic growth in eygpt - Assignment ExampleEgypts sparing growth still faces numerous risks with high political, frugal, and security risks. The country also registers a momentous tax and oppression risk and medium legal risks. However, the country seems to be on a dogmatic trend despite the evident risks. The forecast summary presented in the report highlights that the countrys economic outlook is better due to the political stability resulting from the May 2014 elections. The country is also experiencing an unexpected put cut by the central bank of Egypt, a factor that defines Egypts highly dynamic economic environment. Worth noting is the fact that the exchange rate risks in Egypt have also so ared immensely (Country Reports Egypt, 2015).The IHS report predicts that Egypts economic growth is likely to register acceleration in the medium term outlook. However, the long-term economic growth may be adversely affected by the risks mentioned above. The Countrys Gross house serv ant Product (GDP) has also surged in the first quarter and is likely to improve because of the political stability witnessed afterward 2014 elections. The country also receives financial aids from the Gulf countries. According to the report, the consumer demand is likely to face challenges because on that point is still an ongoing crisis. In case of capital investment, the country bequeath register reduced inflows of immaterial direct investment because of the political and security risks. However, more direct investment from immaterial countries may be registered in the future when the countrys economic landscape stabilizes. Although the government is making efforts to promote foreign investments, political uncertainties are serving as a backlash (p. 10). Egypts labor market reveals that the conditions will be poor in the short-term until there is economic stability.Egypts inflation rates are likely to reduce because commodity prices have decreased remarkably. As mentioned abo ve,