Briefs
Falling inflation
MINISTER OF Economic Development Osman Mohamed Osman has announced that the inflation rate has fallen during the past three months from 12.8 per cent in March 2007 to 8.5 per cent in June 2007.
The Central Agency for Public Mobilisation and Statistics (CAPMAS) attributed the decline to the reported retreat in food and beverage prices from 16.7 per cent in March 2007 to 9.6 per cent in June 2007.
Osman announced that the inflation rate in fiscal year 2006-07 was 10.9 per cent compared to 12.9 per cent in 2003-04, following the flotation of the Egyptian pound.
In a press conference held last week, Osman explained that there are three reasons behind the reduction of the inflation rate: the stability of the exchange rate of foreign currencies, the improvement of economic performance and the stability of import prices. Osman added that the 15 per cent increase in government salaries starting from July 2007, should help citizens face fluctuations in the inflation rate.
Italian-Egyptian love affair
A REPORT in the Italian magazine Corriere della Sera has praised the performance of the Egyptian economy.
The report issued on 21 June 2007 gives an overview of the Egyptian economy and how it is currently attracting foreign investors in general, and Italian businessmen in particular.
According to the report, the Nazif government's economic reform programme which was initiated in 2004 is inspiring confidence in the future. The economic figures illustrate the rapid success of this reform programme, with GDP growth rising from 4.5 per cent in 2004-05 to 6.8 per cent in 2005-06. Current GDP growth is estimated to be over seven per cent. Foreign reserves are at record levels of over $26 billion. Foreign direct investment according to the Ministry of Investment rose to $6.1 billion in 2005-06. The report added that foreign direct investments were concentrated in oil and gas but this year the ministry expects Egypt to attract $8 billion with over 70 per cent outside the energy sector.
"Egypt is now the second largest recipient of FDI in Africa and looks set to overtake South Africa for number one position," said the report.
Moreover, there is a massive transformation in the Egyptian economy after years of stop-start reforms. "The country is now in the throes of a complete transition to a market-based economy," said the report.
It added that this transformation process is delivering major opportunities to foreign investors, particularly investors from Egypt's largest European trading partner- Italy.
Fraud combat
A LANDMARK agreement was signed 30 June between the Arab League and Hemaya Universal at the Jeddah Chamber of Commerce and Industry to organise the first Arab Consumer and Brand Protection Forum (ACBPF). The event, scheduled to be held in Saudi Arabia in May 2008, will gather top trade and finance officials, governmental agencies, consumer protection societies and NGOs to study proposed mechanisms to protect consumer rights and combat fraud.
While commercial fraud worldwide accounts for almost 10 per cent of the global trading volume, estimated at $780 billion annually, similar activities in the Arab region are valued at $50 billion.
According to Al-Towaijri, assistant to the Arab League’s secretary-general for Economic Affairs, commercial fraud has become a global phenomenon. "A more efficient approach is necessary to effectively deal with the problem and minimise its impact on Arab economies," he said, adding that the ultimate goal is to ensure the protection of consumers in the region and to enable commerce and trade to flourish and benefit all.
Certain factors have helped spread the phenomenon. The absence of ethical trade values, the negligible penalties meted out to dealers of counterfeit products, the lack of specialists who can detect imitations and the inadequacy of laboratory equipment have all contributed to the problem.
The ACBPF is planning to coordinate intensively with the trade and industry departments from different Arab countries to identify and penalise shops that trade in fraudulent goods.
Al-Ahram Weekly Online : Located at: http://weekly.ahram.org.eg/2007/854/ec1.htm