Cairo – Mubasher: The Egyptian economy turned a corner in 2018 on the back of the government’s reform programme, which raised Egyptian people’s hopes that the economy would maintain improvement in 2019.
Mubasher showcases the main positive indicators achieved by the Egyptian economy last year supported by the reform programme and the three-term $12 billion loan agreement with the International Monetary fund (IMF).
Economic Growth
The Egyptian economic growth rose to 5.2% in fiscal year 2017/2018, marking the highest growth rate in 10 years,
It is worth noting that the North African nation’s gross domestic product (GDP) hit 4.2% in FY16/17.
Egypt seeks to gradually raise economic growth rates to reach 8% by FY21/22, which requires investments to increase to nearly 25%, in line with gradually cutting unemployment rates to 8%.
Budget Deficit
For the first time, the Arab world's most populous country managed to achieve a preliminary surplus of around EGP 4.4 billion in FY17/18, according to the Ministry of Finance (MoF).
The country’s budget deficit declined by 9.8% of GDP in FY17/18.
Egyptian finance minister Mohamed Maait previously stated that this surplus has been used in financing a part of the general debt’s interest.
The budget deficit fell 2.5% of GDP in the first four months of the current fiscal year – the period from July to October 2018, compared to 2.7% of GDP in the same period.
Tax revenues accounted for 78.7% of Egypt’s total revenues during the July-October period of 2018.
Foreign Reserve
Egypt's foreign reserves surged to its highest level since the early 1990s at the end of last November, recording around $44.51 billion.
The IMF’s loan, as well as the Eurobonds issued by Egypt and the increased remittances from Egyptian expats overseas, have been the key factors in boosting the nation’s foreign cash reserves.
Egyptian Remittances
Egyptian expats’ remittances maintained rising since the flotation of the Egyptian pound in November 2016, registering about $21.4 billion in the first 10 months of 2018, versus remittances of $19.8 billion in the year-ago period, data by the Central Bank of Egypt (CBE) showed.
Inflation
Egypt’s inflation rate kept falling in 2018, as compared with its highest rate recorded at 33% in July 2017.
Inflation rate slashed to 15.6% in November, versus 26.7% in the same month of 2017.
The country’s annual core inflation rate reached 13.5% in July, compared to 33% in the same month of 2017.
Egyptian Exports
The trade ministry revealed that Egyptian exports notably increased during 2018.
Egypt’s exports amounted to $22.6 billion during the first 11 months of last year, versus $20.4 billion in the corresponding period of 2017.
Exports are expected to increase by 10.6% year-on-year at the end of 2018 to $25 billion.
