The European Bank for Reconstruction and Development (EBRD) has upgraded its economic growth forecast for Egypt within the financial year 2017/2018 to 5.3 percent. The decision was attributed to an improved competitiveness and greater investor confidence. In Egypt, growth continued to accelerate for the fifth consecutive quarter and reached 5.3 percent year-on-year in the second quarter of the the financial year 2017/2018. The acceleration was driven by manufacturing, trade, tourism, and construction, as well as the recovery in mining. "Exports and investment picked up and became more prominent drivers of growth thanks to the liberalisation of the exchange rate in November 2016, the resolution of foreign exchange shortages and the strong performance under the IMF-supported programme. Meanwhile, private consumption slowed down and its contribution to growth declined, the result of the record levels of inflation which reached its peak in July 2017 and averaged 29.6 percent in 2017, thus eroding purchasing power. "Economic activity is expected to grow at 5.3 percent and 5.5 percent in financial year 2017/2018 and financial year 2018/2019, supported by the continued boost in confidence, recovery in tourism, increase in foreign direct investment, improved competitiveness, continued strengthening of exports, the start of natural gas production from the Zohr field, the implementation of business environment reforms and prudent macroeconomic policies." a report indicated.
