The general optimism on the economy continues as Egypt’s economy should bottom out and start improving in FY2016-17, according to a report by BNP Paribas. “Several factors will undoubtedly have a positive macroeconomic impact, including the floating pound, improvements in foreign currency liquidity, the accelerated pace of fiscal reforms, and the start-up of production at the Zohr gas field. Yet the public and external accounts will continue to show deficits in the medium term, and the authorities will have to deal with growing social pressures at a time of high inflation. Only the return to strong growth (notably via job-rich investments in non-energy sectors) will enable the Egyptian economy to pull out of a 5-year slump,” the report says. BNP Paribas expects economic growth to hit 3.8% in 2016-17 and accelerate to 4.5% in 2017-18.

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