INTERNATIONAL – Egypt’s economy is expected to grow 5.9 percent in the year ending in June, the International Monetary Fund said on Tuesday — unchanged from its April forecast but below the government’s target of 6 percent to 7 percent .
Analysts have hailed Egypt for tough economic reforms tied to a three-year, $12 billion loan programme with the IMF agreed in late 2016, which has been disbursed in full.
The reforms included devaluing the currency by about half, cutting energy subsidies and introducing a value-added tax. Those changes have left many of Egypt’s nearly 100 million citizens struggling to make ends meet.
In its World Economic Outlook, the Fund brought down its 2019/2020 forecast for consumer price inflation to 10 percent from 12.3 percent six months ago.
Egypt said its economy grew by 5.6 percent in the 2018/19 year, slightly above the IMF’s estimate of 5.5 percent , unchanged from April.