Investment climate in Egypt is improving and the country will be back on economic recovery if the new policies for the economic growth are implemented, chief economic adviser of Allianz, a multinational financial services company said.

“Architects have provided the design for economic recovery, it is the question of implementation. Historically implementation has been a challenge in Egypt,” said Dr Mohamed El-Erian. He was speaking at Global Financial Markets Forum in Abu Dhabi on Monday.

He said economy is improving in the country. “GDP [Gross Domestic Product] is growing. Investment is coming back and economy is healing. The country is targeting high economic growth with significant help from the UAE.”

The UAE along with Saudi Arabia have pledged billions of dollars to support the Egyptian economy.

“Political reforms are important in Egypt. The country is dealing with serious challenges. There is a need to get the system better.”

Sharing his view on current economic challenges facing countries, El-Erian said plunging oil prices is a major concern for countries like Iran, Nigeria and Venezuela. He is also the former chief executive officer of Pacific Management Investment Company (Pimco).

“They are not well places due to fall in oil prices. Cooperation between Cuba and the US would not have happened if Venezuela was not affected due to fall in oil prices.”

The countries are facing financial difficulties due to falling oil prices. Iran and Venezuela have been calling for production cuts from the Organisation of Petroleum Exporting Countries (Opec) to increase the oil prices. The group will meet in June in Vienna to take a decision.

The US economy is healing faster than people thought, he said.

“Solid job growth continues. The companies are healing financially and banks are healing.”

Source: Gulf News