ICEC

Egypt’s economy to grow 5.8 percent in FY2018-19: economist

Egypt’s economy will grow 5.8 percent in the financial year that began in July and 6 percent next year, said former vice president of Banque Misr on Sunday.

Egypt’s financial year begins in July and ends in June.

The Egyptian economy will grow on the back of the recent economic reforms implemented by the government, said Sahar El-Damati, who currently serves as managing director of local private equity Union Capital.

Egypt’s economy has struggled since a 2011 uprising drove tourists and foreign investors away, but tough economic reforms tied to a $12-billion three-year IMF programme agreed in late 2016 have led to positive indicators.

“The private sector’s contribution to growth domestic product (GDP) currently amounts to around 65 percent. That’s why it captures 61 percent of the banks’ total funding in Egypt.” Damati said at a symposium in Cairo.

She also said inflation should taper off to reach below 10 percent at the end of 2019, and this would make central bank bring the lending rates below 12 percent in 2020.

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