Egyptian pound firms slightly against dollar in early Sunday trade    Egypt, Norway's Scatec explore deeper cooperation in renewable energy    Emergency summit in Doha as Gaza toll rises, Israel targets Qatar    Egypt's EDA, Korean pharma firms explore investment opportunities    CBE, banks to launch card tokenization on Android mobile apps    CIB completes EGP 2.3bn securitization for GlobalCorp in seventh issuance    Ex-IDF chief says Gaza war casualties exceed 200,000, legal advice 'never a constraint'    Right-wing figures blame 'the Left' for Kirk killing, some urge ban on Democratic Party    Egypt's FM heads to Doha for talks on Israel escalation    Egypt strengthens inter-ministerial cooperation to upgrade healthcare sector    Egyptian government charts new policies to advance human development    Egypt advances plans to upgrade historic Cairo with Azbakeya, Ataba projects    Egyptian pound ends week lower against US dollar – CBE    Egypt expresses condolences to Sudan after deadly Darfur landslides    Egypt hosts G20 meeting for 1st time outside member states    Lebanese Prime Minister visits Egypt's Grand Egyptian Museum    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Egypt seeks Indian expertise to boost pharmaceutical industry    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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
Daily News Egypt 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.