FDI in Egypt to increase to $9.5bln in FY2019/20: Pharos

Pharos Holding predicts that foreign direct investments to increase from $7.7 billion in FY2017/18 to $9.3 billion in FY2018/19 and to $9.5 billion in FY2019/20.

According to a research report the net international reserve (NIR) level should stabilize around the current levels of $44 billion in FY2018/19.

it expected the NIR to improve further along the upcoming period, mainly on tourism recovery, steady remittances and solid FDIs in oil and gas sector.

According to Pharos, the primary fiscal balance is expected to improve from a surplus of 0.2 percent of GDP in FY2017/18 to a surplus of 1.1 percent of GDP in FY2018/19 and 2 percent of GDP in FY2019/20.

It also forecasted that the overall budget deficit would decline from 9.6 percent of GDP in FY2018/19 to 7.7 percent of GDP in FY2019/20.

“The government’s net debt is projected to decline from 100.3 percent of GDP in FY2017/18 to 89.6 percent of GDP in FY2020/21 on higher GDP growth, fiscal consolidation and improved debt dynamics on currency and tenor,” according to the research.