World Bank forecasts Egypt’s economy to grow by 2.9% in FY 2014/15

Egypt’s economy is expected to grow by 2.9 percent during the current FY (2014/15), up from a 2.2 percent growth during the previous FY, the World Bank announced in its recent Global Economic Prospects report.

Meanwhile, the government is targeting 3.2 percent growth rates in its economic development plan for 2014/15, as economy started to recover from dramatic slowdown triggered from political upheaval following the January 25 Revolution.

“Egypt especially benefited from greater stability and large-scale financial support from the GCC for investment programs. As a result, industrial production rebounded sharply and the purchasing managers’ indexes (PMIs) indicated marked improvements in confidence,” the organization said in the report.

According to the report, investors’ interest in Egypt increased as the economy has began to recover, and GCC support helped ease a shortfall of foreign reserves.

The World Bank report noted the government’s decision to apply subsidy reform in 2014, that raised fuel prices by 78 percent, with a plan to double electricity prices over the next five years.