Cairo - Mubasher: NBK Capital expects the Egyptian economy to achieve an improved 3.5% growth in the fiscal year 2016/2017, according to a report issued on Thursday.
This comes after Egypt experienced a robust recovery last year driven in part by a public sector investment push, while growth in economic activity stalled on a shortage of foreign exchange and a collapse in the tourism sector which was hard hit by terror and uncertainty, the report added.
NBK Capital predicts Egypt's fiscal deficit to improve in FY 2016/2017 to 9%, and 8% in FY 2017/2018, from 11% in the current fiscal year.
However, pressure on the external position remains a challenge for the Egyptian economy, but the IMF agreement could ease the pressures, but will likely include further currency devaluation, indicated the report.
