{"id":581698,"date":"2023-02-20T00:00:00","date_gmt":"2023-02-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/20\/the-enterprise-2023-reader-poll-more-of-you-are-feeling-downbeat-about-our-economic-prospects-as-headwinds-mount\/"},"modified":"2023-02-20T00:00:00","modified_gmt":"2023-02-20T00:00:00","slug":"the-enterprise-2023-reader-poll-more-of-you-are-feeling-downbeat-about-our-economic-prospects-as-headwinds-mount","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/20\/the-enterprise-2023-reader-poll-more-of-you-are-feeling-downbeat-about-our-economic-prospects-as-headwinds-mount\/","title":{"rendered":"The Enterprise 2023 Reader Poll: More of you are feeling downbeat about our economic prospects as headwinds mount"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><\/p>\n<p><\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"\"><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"\"> <\/span><span style=\"font-weight:700\">The consensus among Enterprise readers: 2022 was not a great year for business \u2014 and <\/span><span style=\"font-weight:700\">there\u2019s uncertainty on what the future holds.<\/span><span style=\"font-weight:400;\"> Towards the end of last year, some 70% of you agreed that 2022 hadn\u2019t lived up to expectations, with the outbreak of war in Ukraine, the weakening EGP, spiraling inflation, and import restrictions all piling pressure on local businesses. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Four months on from <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;font-weight:700;\"><a href=\"https:\/\/enterprise.press\/afternoons\/pm-the-enterprise-fall-2022-reader-survey-the-results\/\" style=\"\">our last survey<\/a><\/span><span style=\"font-weight:700\">, and the outlook is looking even less rosy.<\/span><span style=\"font-weight:400;\"> Times are getting tougher for businesses which are having to deal with the impact of the EGP devaluation, the FX shortage, and accelerating inflation. The economic headwinds mean that you are now more uncertain about what the year ahead will bring.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/Enterprise-January-2023-reader-survey-results-1600px-English-Arabic-2023-v1-03-scaled.jpg?ssl=1\"\/><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Your outlook on the year ahead is markedly less optimistic<\/span><span> than it was just a few months ago. Back in September, 48% of respondents thought business conditions would improve in 2023. Today, you\u2019re evenly split: <\/span><span style=\"font-weight:700\">38% of respondents saying they see conditions improving over the course of 2023, while 37% don\u2019t see that happening<\/span><span style=\"font-weight:400;\"> \u2014 and a quarter of you are uncertain about what the year holds in store. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/Enterprise-January-2023-reader-survey-results-1600px-English-Arabic-2023-v1-17-scaled.jpg?ssl=1\"\/><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">There\u2019s also less certainty among our readers when it comes to their competitive advantage:<\/span><span style=\"font-weight:400;\"> Some 13% of respondents think their business will fare worse than the competition this year, while 41% think they\u2019ll do better. Another 41% aren\u2019t sure or think the status quo will be maintained for the year. That\u2019s more mixed than how you all felt in September \u2014 today, a smaller percentage of respondents see the competitive landscape holding steady. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/Enterprise-January-2023-reader-survey-results-1600px-English-Arabic-2023-v1-27-scaled.jpg?ssl=1\"\/><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">You\u2019d think that all this uncertainty would translate into scaled back investment plans, but that doesn\u2019t seem to be the case:<\/span><span style=\"font-weight:400;\"> Almost half (47%) of respondents said they\u2019re planning to commit fresh investment in Egypt in 2023 (up from 40% in September), while 30% of you said that new investments are unlikely to be part of your 2023 plans. Last time we checked in, 39% of respondents said they probably wouldn\u2019t be investing within six months\u2019 time. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/Enterprise-January-2023-reader-survey-results-1600px-English-Arabic-2023-v1-29-scaled.jpg?ssl=1\"\/><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">But: Borrowing costs need to fall to unlock that capex.<\/span><span style=\"font-weight:400;\"> One-fifth of you say the Central Bank of Egypt needs to cut interest rates by more than 600 bps to help you <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\">increase capital spending, while 26% of you think that interest rate cuts anywhere between 300-500 bps would do the trick. Some 10% believe they can make do with less, saying that just 50-200 bps rate cuts could be enough.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/Enterprise-January-2023-reader-survey-results-1600px-English-Arabic-2023-v1-05-scaled.jpg?ssl=1\"\/><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">The vast majority of you (90%) said that your business is being directly impacted directly <\/span><span style=\"font-weight:700\">by the crisis here at home<\/span><span style=\"font-weight:400;\">, while a mere 7% said there\u2019s no direct effect. Inflation is taking its toll on almost everyone (88%) who responded to the survey, while more than two-thirds (68%) said the FX shortage is impacting their businesses.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2023\/2\/Enterprise-January-2023-reader-survey-results-1600px-English-Arabic-2023-v1-19-1-scaled.jpg?ssl=1\"\/><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">It\u2019s no surprise that the weaker exchange rate and the FX shortage are the two single-biggest challenges facing businesses:<\/span><span style=\"font-weight:400;\"> Almost a third (30%) see the devaluation of the EGP \u2014 which has seen the local currency lose nearly half its value against the greenback over the past year \u2014 as posing the greatest challenge for their businesses, while 17% cited the inability to access FX as the biggest issue. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">What\u2019s your forecast for the exchange rate?<\/span><span style=\"font-weight:400;\"> Only 26% of you see the EGP returning to below 30.00 to the greenback by the end of 2023. More than two-thirds think the currency will weaken further from its current 30.62 level, with 41% expecting the currency to end the year between 30.01-35.00 and 27% forecasting a decline past 35.01. That more or less matches your budgeting plans for the year: the majority (52%) are budgeting for a USD rate of EGP 30.01-35.00 and 16% are on the more conservative side and planning for a rate above EGP 35.00.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Next up: Bureaucracy and government regulation<\/span><span style=\"font-weight:400;\">, which 13% of respondents cited as their business\u2019 biggest headache. That\u2019s lower than the 19% of you who said the same in September, and it shows in your sentiment on the Madbouly Cabinet. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Sentiment on the council of ministers has improved: <\/span><span style=\"font-weight:400;\">Five months ago, 62% of you saw the council of ministers as unsympathetic to the needs of business. In our most recent survey, that figure has dropped to 50%. Some 29% of all respondents think Cabinet is in tune with the needs of the business community. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Pushed to the back burner:<\/span><span> Supply chain issues, finding and retaining talent, and taxation have been pushed off your worry list by the FX situation.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;font-weight:700;\"><a href=\"https:\/\/enterprise.press\/2023\/02\/20\/the-enterprise-2023-reader-poll-more-of-you-are-feeling-downbeat-about-our-economic-prospects-as-headwinds-mount\/\" style=\"\">Click \/ tap here<\/a><\/span><span style=\"font-weight:700;\"> to read the full survey.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>2022 was not a great year for business \u2014 and there\u2019s uncertainty on what the future holds<\/p>\n","protected":false},"author":1,"featured_media":581699,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9248],"tags":[271,104,2907,72,103,2234,182,349,78,7128],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-581698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-enterprise-reader-poll","tag-central-bank-of-egypt","tag-economy","tag-enterprise-reader-poll","tag-enterpriseam","tag-fdi","tag-foreign-exchange","tag-inflation","tag-interest-rates","tag-ipo-watch","tag-ma-watch","wpautop","entry"],"acf":{"mongo_id":"4ec72f79-8b38-4b26-9ea6-c813e3136a46","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/1\/Cairo-traffic-1600px.jpg","photo_position":"below","homepage_title":"","full_issue_title":"The Enterprise 2023 Reader Poll: More of you are feeling downbeat about Egypt\u2019s economic prospects as headwinds mount","related_issue":[581693],"teaser":"2022 was not a great year for business \u2014 and there\u2019s uncertainty on what the future holds","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/2\/.20bebdbc-d85e-4330-9542-c8a36f1e5153.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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In a nutshell: You have better access to FX than in 4Q2016;Almost 40% of you say 1Q was a good time to do business in Egypt \u2014 and almost 40% of you think the opposite;Nearly 15% of your companies gave\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2017\/4\/1230.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":549691,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/27\/it-hasnt-been-a-great-year-but-wow-are-you-an-optimistic-lot\/","url_meta":{"origin":581698,"position":1},"title":"It hasn\u2019t been a great year \u2014 but wow, are you an optimistic lot","author":"enterpriseam admin","date":"27 September 2022","format":false,"excerpt":"Did you miss the results of our Enterprise Fall 2022 Reader Survey in yesterday\u2019s EnterprisePM? 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