Egypt delivered a much stronger than expected 2Q2017 growth of 4.9% and “burgeoning central bank reserves could be a lead indicator of higher foreign investment,” according to the PwC Middle East Economy Watch. The story was not similar across the region as a whole, as oil prices remained below expectations. Richard Boxshall, Senior Economist at PwC Middle East, said: “While the economic and fiscal outturns for the first half of the year are less than anticipated, momentum is building in key parts of the region. These signs suggest that stronger economic growth could return in 2018, so long as oil prices maintain or exceed current price levels.” He added that “a change in the currency regime is only likely to make good economic sense if and when commodities play a much smaller role in the Gulf economies as a result of successful diversification efforts. For most countries, this remains a fairly distant goal.”

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