Egypt best-performing economy in MENA – IMF official

Egypt’s economy has been the runaway success among the Middle East region, with expectations to grow 5.5 percent in 2019, an International Monetary Fund official said on Wednesday.

“Egypt is the best” in terms of performance in the Middle East region that witness unstable political and economic situation, said Gian Maria Milesi-Ferretti, deputy director of the IMF’s Research Department.

Milesi-Ferretti made his remarks during a World Economic Outlook presentation session hosted by the School of Business at the American University in Cairo (AUC).

In its World Economic Outlook, the Fund edged up its 2019 forecast for Egypt’s consumer price inflation to 14.5 percent from 14 percent. It also predicted an easing to 12.3 percent in 2020.

Unemployment was projected to fall to 9.6 percent from 10.9 percent last year.

Egypt signed a three-year $12 billion loan programme with the IMF in late 2016 tied to bold reform measures as it sought to lure back foreign investors who pulled out after an uprising in 2011.

The government imposed tough reforms, including a steep currency devaluation and deep cuts to energy subsidies and introducing a value-added tax.