Oil drops 3% as virus infections, Libyan oil output rebound    US early voting tops 60 million as historic pace continues    Thursday 29 October paid holiday for private sector workers in Moulid El-Nabi    Thai Parliament holds special session as protests continue    Turkish lira leads EMEA FX losses as geopolitics, virus spike weighs    Live score: Zamalek v Ismaily (Egyptian Premier League)    Juventus shouldn't need a slap to wake up says coach Pirlo    Palestinian teen beaten to death after West Bank chase by Israeli army: Report    Former Brazil star Ronaldinho tests positive for COVID-19    Oxford COVID-19 vaccine trials produce robust immune response in elderly: FT    Egypt reports 143 new coronavirus cases, 12 deaths on Sunday    Polls reopen for second day in Egypt's new House elections    Ethiopia summons US ambassador over Trump comments in dam dispute    UAE merges insurance authority with central bank: Dubai ruler tweet    BREAKING: EU calls for resumption of Ethiopia dam talks    In photos: Egyptian celebrities attend opening of El-Gouna Film Festival's 4th edition    4th El-Gouna Film Festival kicks off despite 'hardships of the cinema industry this year'    Egyptian artefacts among items sprayed with olive oil in several Berlin museums    Egyptian insurance companies' premiums 9.6% up in five months    Egypt's President Sisi names new head of anti-corruption watchdog    Egypt's c.bank offers 18 bln pounds T-bills on Sunday    EgyptAir offering discounts for some international flights    Egypt records 212 new coronavirus cases, 14 deaths on Saturday    Egypt to require PCR coronavirus tests for airport travelers    Egypt sends 125 tonnes of glass by sea to Beirut    Legend Messi officially wants to leave Barcelona, hands transfer request    Global smartphone sales drop 20% in Q2, yet Apple's iPhone sales steady    Sisi: Egypt keen on establishing development projects with Iraq, Jordan    Egyptian megastar Amr Diab releases new hit music video    Making of Harry Potter will be available for fans at new park in Tokyo    Egypt's Senate elections official results to be announced Wednesday    Netflix Egypt is bringing megastar Amr Diab back with a new original    Egypt reopens Rafah border crossing for first time since April    Egypt's senate elections 2020 trending on social media in few days    African Champions League final will be played on Oct. 16-17, CAF says    No room to delay Egyptian Premier League games – EFA's board member    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.

Inflation to average 12.8% in CY 2019, 10.5% in CY 2020: FocusEconomics
GDP to expand to 5.2% in FY 2019, overnight deposit rate to reach 15.42% by end of CY 2019
Published in Daily News Egypt on 10 - 01 - 2019

The Egyptian economy faced some challenges during the second quarter (Q2) of the fiscal year (FY) 2019, following a small slowdown in Q1 as the non-oil private sector was stuck in contractionary territory in November for the third consecutive month, according to the January 2019 edition of the FocusEconomics's Consensus Forecast for the Middle East & North Africa, which was issued on Tuesday.
However, the report cites the ease in inflation rates in November 2018 which reached15.7%, down from 17.7% in October 2018, as the rise in fruits and vegetables' prices slowed to an extent.
Accordingly, FocusEconomics' panellists expect the inflation to average 12.8% in calendar year (CY) 2019, and 10.5% in CY 2020.
On 27 December, the Central Bank of Egypt (CBE) left the interest rates unchanged at 16.75%, 17.75%, and 17.2% for the overnight deposit rate, the overnight lending rate, and the main operation rate, respectively.
However, the CBE did pencil in a new inflation target of 9.0% plus or minus three percentage points for Q4 of CY 2020, down from 13.0% plus or minus three percentage points for Q4 of CY 2018.
The report forecasts that the overnight deposit rate will end in CY 2019 at 15.42%, and in CY 2020 at 14.25%.
On the other hand, despite the fact that the CBE has allowed the value of the pound to be determined by market forces since November 2016, the authorities have continued to ensure stability in the exchange rate against the USD, according to the report.
Yet, FocusEconomics' panel expects the pound to slightly weaken going forward, averaging EGP 18.04 per USD in CY 2019, and EGP 18.38 per USD in CY 2020.
In conclusion, the report indicated that this FY's economic growth should be robust thanks to higher government investment spending, rising natural gas production, and an improving regulatory environment.
Moreover, FocusEconomics' panellists expect the GDP to expand to 5.2% in FY 2019—which did not change from last month's forecast—nd reach 5.3% in FY 2020.
However, despite the reduction in recent years, fiscal imbalances continue to weigh on economic prospects.
More positively, the World Bank signed off on $1bn of financial support to Egypt on 9 December, adding to the amount of $3.2bn, which was already committed since 2015.

Clic here to read the story from its source.