IMF Lowers Forecasts for Global GDP Growth; Raises Egypt’s🏛

Local Pickup🌇

IMF Lowers Forecasts for Global GDP Growth; Raises Egypt’s🏛

The International Monetary Fund (IMF) has released its biannual World Economic Outlook (WEO) report, where it has lowered its expectations for global economic growth but raised its expectations for Egypt’s economic growth.

What is the WEO👀 The WEO provides economic analysis & forecasts of its member countries, & highlights risks that could threaten growth.

More Details🧐 The IMF expects global economic growth to decrease to 4.4% in FY 2022, down 0.5% from the October 2021 revision, due to lower expectations of GDP growth for the biggest two economies in the world, the U.S. & China.

The IMF attributed the pressure on global economies to five factors: rising energy prices, supply chain crisis, inflation, global debt crisis, & potential COVID variants.

On the other hand, the IMF raised its forecast for Egypt’s economic growth rate by 0.4% for FY 2022 to 5.6%, while expected economic growth for the MENA region increased by 0.3% to 4.4% in FY 2022.

Why is this Important🤔 The World Bank had also raised its expectations for Egypt’s economic growth in FY 2022 from 5.0% to 5.5%, & Minister of Planning & Economic Development Dr. Hala El Saeed expects a 5.5-5.7% growth in Egypt’s economy this fiscal year.

Edita Targets Investments Up To EGP 400 Million in 2022💸

Edita’s (EFID) head of investor relations revealed the company is adamant about increasing its production capacity in 2022, & could inject as much as EGP 400 million in investments.

More Details🧐 Edita had acquired a bakery production line back in June of last year for EGP 135 million. The production line is expected to start operating within two months, & will allow Edita to meet the growing demand for its Molto products.

Why is this Important🤔 Edita had recently suspended its acquisition of the Egyptian Belgian Company earlier this month, before calling the whole deal off due to failed negotiations. 

Edita is now exploring expansion strategies, whether through building a new factory or regional expansion through acquisitions.

Orascom Acquires Sawiris-Owned Company for $35 Million💰

Orascom Construction (ORAS) announced the acquisition of “a leading company in the import, distribution & services of equipment in Egypt,” in a disclosure to the EGX.

More Details🧐 ORAS’ extraordinary general meeting last month had approved the acquisition of three companies, which include the National Equipment Company, Orascom Trading, & Orascom Free Zone, for a total of $35 million.

Why is this Important🤔 ORAS closed yesterday’s trading session up 0.14%.

Eastern Company to Launch “Largest Digital Transformation Project in Egypt”👩‍💻

Eastern Company (EAST) has partnered with multinational software company SAP Global to implement the enterprise resource planning (ERP) system throughout the tobacco giant’s operations.

What is ERP👀 ERP is software that automates business processes, & provides insights based on input collected from various departments including accounting, sales, supply chain management, marketing, & human resources.

More Details🧐 EAST has dubbed the project “the largest digital transformation project in Egypt,” & attributed this statement to the company’s “overlapping processes at all operational stages.”

The project is expected to be implemented across the entire company by October, 2023.

Why is this Important🤔 International corporations use ERP to develop administrative & financial systems, as well as improve project management & general performance.

EAST closed yesterday’s trading session 0.75% down.

What else is Clapping👏

  • Nahr Elkhair (KRDI) Surges 169% on Trading Debut

  • EGX is Off Tomorrow, January 27, 2022, on the Occasion of January 25th Revolution

  • FRA Approves Madinet Nasr Housing’s (MNHD) Request to Increase Capital

Global Pickup🌎

Google is Being Sued for “Deceptive” Location Tracking📍

The crackdown on big tech companies continues as Google (NASDAQ: GOOGL) is being sued for deceiving users when it comes to their location history.

More Details🧐 Users can choose to turn off the “Location History” feature from their device settings, & Google’s support page states that “the places you go are no longer stored” if you decide to disable the feature.

The lawsuit argues that Google’s support statement simply isn’t true. 

According to the lawsuit, Google continues to store, & profit from, users’ location information through other Google-owned apps after users have disabled the feature.

The lawsuit also criticizes Google’s excessive nudging to get users to enable their location sharing settings.

Why is this Important🤔 This is the latest lawsuit being thrown against a big tech company after a court ruled a lawsuit aiming to break up Meta to go ahead.

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