IMF expects surge in private investment in Egypt

The International Monetary Fund (IMF) is projecting an increase in private investment in Egypt as a result of "improved confidence" in the country's economy.

In its latest Regional Economic Outlook, the fund has maintained its previous projection of a 5.5 percent growth rate for Egypt's GDP in the 2018/19 fiscal year, up from 5.3 percent in the 2017/18 fiscal year.

The report, published on the IMF's website on Tuesday, expected the average annual consumer price inflation to decline to 12.6 percent in the 2018/19 fiscal year, down from 13.9 in 2017/18.

The report, which tackles the Middle East and Central Asia region, said that the region's annual export growth in 2018 is projected to more than double from last year to 15.4 percent.

It said the surge, mostly driven by Egypt, reflects "base effects from receding macroeconomic imbalances during 2016/17 and an improved business environment."

The report says that a "neutral or tightening monetary policy stance" that Egypt and other countries in the region have maintained "remains broadly appropriate."

However, the report said that these countries "will need to remain vigilant against a rise in inflation and stand ready to anchor inflation expectations should second-round effects from higher energy and food prices materialise."