World Bank raises Egypt 2016 growth forecast to 3.8%

The World Bank Group has raised its forecast for Egypt’s growth this year to 3.8 percent, according to the bank’s latest report.

The World Bank now expects Egypt to grow to 3.8 percent this year, a slight upgrade from the 3.3 percent it forecast in earlier report.

The economic growth will be pushed by the recovery in local demand as consumption remains strong, but imports is still challenged by the scarcity of foreign exchange and an overvalued pound, the bank added.

According to the report, World Bank expects a steady growth for the Egyptian economy on the medium run, as the government continues its economic recovery plan and the reduction of the budget deficit.

The World Bank also said that the rise in energy prices and the new value added tax could plunge the inflation on the short run, leaving a negative effect on low and middle-income families.