print logo

Daily News Egypt: Egypt’s economy to keep growth trajectory alive: Arqaam Capital

External balance continues to improve, current account deficit remains unchanged.
06.02.18 | Interesting article at Daily News Egypt

A recent report issued by Arqaam Capital expects Egypt’s economy to keep its growth trajectory alive, with the government continually carrying out its reform plans.

According to the report, growth in Egypt is set to accelerate to 5-6%, contingent on quick implementation of fiscal and investment reforms and a more significant drop in inflation to generate higher investments and industry-led growth.

The exchange rate has remained broadly stable since March 2017. The Central Bank of Egypt (CBE) has not intervened in the foreign exchange market directly.

Notwithstanding short-term appreciation pressures, the external position in fiscal year (FY) 2017, adjusted for the policy shift mid-year, was moderately weaker than the level consistent with fundamentals and desirable policies.

Inflation has turned the corner and is expected to decline to around 12% by June and to single digits by 2020.

The International Monetary Fund (IMF) and the government agreed that policy interest rates should not react to the favourable base effects, which are projected to reduce year-over-year inflation significantly in the coming months.