Egypt detects 354 new coronavirus cases, 12 deaths on Monday    Egypt condemns Houthi attack on Saudi fuel distribution terminal    Sisi, telecom company Orange discuss increasing cooperation in Egypt    Cairo International Book Fair suspended for five months over coronavirus concerns    Suspension of CAF boss Ahmad opens elections race wide open    GCC countries surpass 1 million COVID-19 cases: Reuters Tally    AstraZeneca novel COVID-19 vaccine can be 90% effective, results show    Egypt's military production minister, S. Korean ambassador discuss boosting industrial cooperation    UN urges civilian protection after Ethiopia's 72-hr deadline for Tigrayan forces    Orascom Development inks $265m loan deal with four banks    International Energy Agency tailors a plan for post COVID-19    Egypt-Kenya bilateral trade hits $303m in H1-20    Suarez says Uruguay players let guard down after spate of COVID-19 cases    Polling stations open at home for 1st stage of Egyptian parliamentary run-offs    Liverpool coach Klopp blasts broadcasters over hectic match schedule    Biden expected to nominate Blinken as secretary of state    Egypt detects 351 new coronavirus cases, 13 deaths on Sunday    Egyptian president inaugurates Middle East and Africa Smart Transportation Fair    Winners of the 5th Sharm El-Sheikh Int'l Theatre Festival for Youth    Egypt confirms 358 new coronavirus cases, 14 deaths on Saturday    BREAKING: Sudan decides not to participate in ministerial meeting on GERD Saturday    G20 to discuss post-pandemic world, back debt relief    First day of Egypt's parliamentary runoffs kicks off for expats    US will reduce number of its troop in Iraq, Afghanistan    Don't miss the concerts of the 12th Cairo International Jazz Festival    Asia forms world's biggest trade bloc, a China-backed group excluding U.S    Egypt unveils largest archaeological discovery in 2020 with over 100 intact sarcophagi    Palestinians mourn the loss their longtime spokesman, Saeb Erekat    Egypt, Ethiopia, Sudan to resume Nile dam talks today    Trump says won't blame Egypt for being ‘upset' over GERD dispute with Ethiopia    1st stage of Egypt's parliamentary elections kicks off on Saturday    Global Finance: Egypt's Tarek Amer among the world's top 20 central bank governors    Legend footballer Lionel Messi says he is forced to stay with Barcelona    Iraqi conglomerate eyes developing land that housed Mubarak-era ruling party HQ    Famous Egyptian actor Mahmoud Yassin passes away at 79    Legend Messi officially wants to leave Barcelona, hands transfer request    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Zaha speaks out after online racial abuse    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Egyptian economy in good shape as FY 2018 ends: FocusEconomics
Published in Daily News Egypt on 07 - 06 - 2018

Egypt's economy seems in good shape as annual economic growth accelerated in the January-March period to reach a multi-year high. Additionally, in May, foreign reserves hit a record monthly high and, in April, business conditions in the non-oil private sector were in positive territory for only the second time in over two years, according to the Middle East & North Africa – June 2018 report published by FocusEconomics.
Moreover, the gas sector also received a boost on 10 May when a third production unit began output at the Zohr gas field. Meanwhile, flotation of part of the state-owned tobacco company on the Egyptian Exchange was announced on 28 May, to raise revenue and invigorate the stock market.
However, the report indicates that apparent social tension following the increase in metro ticket prices underlines the careful balancing act facing President Abdel Fattah Al-Sisi: continuing with-backed structural reforms to the economy, while minimising the burden on Egyptians who are already squeezed financially.
FocusEconomics said it believes that Egypt's economy will maintain its strength in fiscal year (FY) 2019, backed by an investments boost.
In addition, the report indicates that Egypt's external sector will continue to benefit from the weaker pound.
However, the high debt burden and the sizeable budget deficit will continue to pose downside risks. FocusEconomics analysts expect GDP to expand 5% in FY 2019, which is unchanged from last month's forecast, and 5% again in FY 2020. Meanwhile, total investment is forecasted to grow 9.2% in FY 2019, which is unchanged from last month's forecast, and 9.5% in FY 2020.
In terms of monetary policy, headline inflation continued to decelerate in April, slowing from 13.3% in March to 13.1%. FocusEconomics panellists expect inflation to average 14.1% in calendar year (CY) 2018 and 11.7% in CY 2019.
The report indicates that although the CBE left the key interest rates unchanged in May, international oil prices have risen quickly in recent months, leading to increased inflationary risks for Egypt. Still, headline inflation decelerated to 13.1% in April from 13.3% in March, while core inflation remained unchanged in April at 11.6%.
FocusEconomics forecasted that the overnight deposit rate to be reduced to 15.26% by the end of CY 2018 and 12.45% by the end of CY 2019. Meanwhile, the analysts believe that the Egyptian pound will strengthen by the end of CY 2018 to 17.56 against the dollar, before weakening to EGP 17.80 a dollar by the end of CY 2019.

Clic here to read the story from its source.