Egypt’s economy to increase by 5.9% in FY 2019-20: EBRD

Egyptian economic output likely to expand by 5.5 percent in the financial year 2018-19 and by 5.9 percent in 2019-20, compared with a previous 5.3 per cent, European Bank for Reconstruction and Development (EBRD) said.

According to ERBD it is tourism, natural gas production, telecommunications, construction and Suez Canal revenues that have driven strong growth.

ERBD sees that the main risks to the outlook arise from a persistent wait-and-see approach taken by foreign investors and the erosion of competitiveness because of the recent appreciation of the pound and stubbornly high inflation. However, the risks are partially mitigated by the authorities’ strong commitment to the implementation of structural reforms.

On the other hand, growth among the southern and eastern Mediterranean countries to rise to 4.6% in 2019 from 4.4% last year, before picking up to 5.1% in 2020.

Egypt is leading the pack while Moroccan GDP will grow 3.2% in 2019, Tunisia 2.5%, Jordan 2.2% and Lebanon 1.3%.