IMF raises Egypt 2017 economic outlook to 4.1%, MENA unchanged

The International Monetary Fund on Tuesday raised its forecast for Egypt’s economic growth this year to 4.1 percent, marking a rise of 0.6 percent, according to its World Economic Outlook report.

The Washington-based fund further said in its annual report that Egypt’s economy is projected to grow 4.5 percent in financial year 2017/2018, “supported by reforms aimed at correcting fiscal and external imbalances, restoring competitiveness, and creating jobs.”

Egypt’s average consumer price inflation for 2017/18 is projected at 21.3 percent, the IMF’s report added.

IMF Mission Chief for Egypt, Middle East and Central Asia Subir Lall said in an online briefing in September that inflation is expected to fall “slightly above” 10 percent by the end of the financial year and to single digits by 2019.

Egypt agreed a three-year, $12 billion IMF loan program in November last year that is tied to ambitious economic reforms such as spending cuts and tax hikes to help revive an economy where subsidies accounted for a quarter of state spending.

The IMF kept the growth forecast of the Middle East and North Africa region for this year unchanged at 2.2 percent. UAE’s growth predictions were lowered once again by 0.2 percent to 1.3 percent this year, the IMF said.

The IMF reiterated Saudi Arabia’s growth forecast for this year at 0.1 percent. Projections for shrink in Kuwait’s economy were also raised by the IMF by 1.9 percent, to be 2.1 percent this year. Qatar received predictions of 2.5 percent growth for this year.