INTERNATIONAL – Egypt’s economy is expected to grow 5.3 percent in the fiscal year that ends in June, according to forecasts economists polled by Reuters, the same view found in a survey three months ago.
The economy, with the exception of the oil sector, has struggled to attract foreign investors since the 2011 uprising that unseated Hosni Mubarak.
Egypt’s non-oil private-sector activity shrank for a fourth month in December. Private-sector activity has expanded in only five months over the last three years.
“Medium-term growth remains slightly subdued as the government maintains a strong grip on the economy, but is nonetheless supported by an expected expansion in the infrastructure, manufacturing and tourism sectors,” said Nadene Johnson, an economist at NKC African Economics.
Hoping to bolster investor confidence, Egypt has been implementing tough economic reforms as part of a three-year, $12 billion deal agreed with the International Monetary Fund in November 2016. The reforms include a value-added tax, cuts to energy subsidies and a steep currency devaluation.
The median forecast from 14 economists polled Jan. 8-22 put growth at 5.3 percent in the current 2018/2019 fiscal year and 5.5 percent the following two fiscal years.