Cairo – Mubasher: Egypt’s economic growth is expected to accelerate to 5.9% during fiscal year 2019/2020 from 5.6% a year earlier, according to a report released by the European Bank for Reconstruction and Development (EBRD).
The economic growth is forecast to be boosted by the growing strength of the tourism sector and exports, in addition to the launch of major public construction projects.
“Other positive factors are likely to include the re-engagement of domestic and foreign private investors following recent interest rate cuts, and the continued implementation of business environment reforms and prudent macroeconomic policies,” the report indicated.
On the other hand, there are several risks to the positive outlook, mainly the “wait-and-see” approach taken by foreign investors as well as the negative economic outlook in the European Union (EU), the country’s key trading partner, in addition to “the erosion of competitiveness because of the recent appreciation of the pound.”
However, the Egyptian government has managed to partly alleviate these risks by “implementing structural reforms,” the report highlighted.
It is worth mentioning that during the first quarter of FY19/20, Egypt’s economy grew by 5.6%, with plan to reach 6% for the full fiscal year, the country’s planning minister Hala El-Saeed previously revealed.
