IMF sees 6% medium-term growth for Egypt, single-digit inflation in 2020

Big 5

The International Monetary Fund (IMF) said it expected Egypt’s economy to grow to around 6 percent over the medium term on condition of assuming sustained implementation of reforms.

The country’s inflation is expected in the range of 13-14 percent by the end of the current financial year, and to reach single digits in 2020, showed an IMF report on Saturday on the fourth review of Egypt’s Extended Fund Facility arrangement.

“The outlook is favorable, provided policies as agreed under the programme are implemented. The continued strengthening of tourism and construction, and rising production of natural gas are projected to raise GDP growth to 5.5 percent in 2018/19.” IMF report further read.

“Growth is projected to rise further to 6 percent over the medium term as ongoing structural reforms are fully implemented and translate into stronger private investment.”

Egypt’s economy has been struggling since a 2011 uprising drove tourists and foreign investors away, but economic reforms tied to a $12-billion three-year IMF programme agreed in late 2016 have led to positive indicators after years of turmoil.

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