Egypt main booster of macro-growth in MENA: IMF

Egypt is the main booster of macro-growth in oil importer countries in the MENA region, according to the International Monetary Fund (IMF).

The IMF further expected that Egypt’s economic growth is likely to rise by nearly 5.5% in 2019 and by 5.3% this year.

In its latest Regional Economic Outlook , the fund expected the average annual consumer price inflation to decline to 12.6 percent in the fiscal year 2018/19, down from 13.9 in FY2017/18.

The report said the improve in the Egyptian economy indices is mostly driven by “receding macroeconomic imbalances during 2016/17 and an improved business environment.”

The report says that a “neutral or tightening monetary policy stance” that Egypt and other countries in the region have maintained “remains broadly appropriate.”

The report highlighted Egypt’s effort to facilitate the restructuring of failing firms, adding that the country is taking steps to improve access to industrial land for business.

t also said that Egypt’s plans to sell minority shares in five state firms this year aims to “reduce the role of the state in the economy.” This as part of a broader plan to sell shares in at least 23 state-owned companies over the next few years across several sectors.

The report said that a low productivity informal sector dominates a large section of the economy in the region, saying the formal sector makes up only a third of employment in the region.