Egypt's bourse suspends trading for the first time in three years    Valverde worried by Barca's limp away form after Granada defeat    Amazon's Jeff Bezos pledges to swiftly combat climate change    Baby gut study finds bacteria different after C-section births    Live score: Arsenal v Aston Villa (English Premier League)    Zidane unfazed by Mourinho talk as Real prepare for Sevilla test    Hong Kong riot police curb airport protest after clashes    Australia offers Trump only limited commitment on Iran: PM    Saudi Arabia says if attack launched from Iran, it would be an act of war: CNN    Virgin's India Hyperloop flagship to provide 1.8mn jobs    Joe Biden urges investigation into U.S. Trump Ukraine call    Zamalek president Mortada Mansour talks Egypt's Super Cup, unveils reasons behind defeat    Huawei, China Mobile team up to bid for Brazil's Oi – report    Egypt's EGAS to clinch seven exploration agreements in Q4    Grand Egyptian Museum's construction works 93% complete    Egypt's Health Ministry bans all ranitidine medicines    Sisi to deliver Egypt's vision on regional, world developments at UNGA    Thomas Cook in talks with UK government and investors over rescue deal    El Gouna Film Festival celebrates 100th birth anniversary of novelist Ihsan Abdel-Quddous    FIPRESCI and Netpack hosted by El Gouna Film festival for the first time    Small protests in Egypt dispersed by police    Egypt jumps nine spots in Tourism Competitiveness Index rankings    Ahly wins Egyptian Super Cup after beating Zamalek    Rare protests in Egyptian streets after online call for dissent    Egypt's tuk-tuk start-up Halan to tap Ethiopia before year-end    Egypt's health ministry bans all ranitidine medication    Cairo Opera hosts closing ceremony of the Cairo International Festival for Contemporary and Experimental Theatre    Egypt, UAE cooperate over drugs combating    Allianz Egypt allots $399K to promote UNICEF's vulnerable children initiative    Felix Brych to referee Ahly-Zamalek Super Cup game in Egypt's Alexandria    'Egypt will not allow any country to impose its will on another in Ethiopian dam issue,' FM says    Egypt, Ethiopia at odds as talks over Blue Nile dam resume    Egypt says GERD talks with Ethiopia 'stumbled', next round in Khartoum in October    Egypt's Sisi discusses education, terrorism at national youth conference    Egypt's PM discusses details of Al-Hussein Mosque renovation    Egypt's Baron Empain Palace to be reopen after renovation    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    

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

Focus Economics expects Egypt's GDP to expand 5.5% in FY 2020
State's public debt to record 85.2% of GDP in current FY, Focus Economics forecasts
Published in Daily News Egypt on 01 - 08 - 2019

Focus Economics panellists expect Egypt's GDP to expand 5.5% in fiscal year (FY) 2020, which is unchanged from last month's forecast, and 5.4% in FY 2021.
Focus Economics added in its report in August that the economy should broadly maintain its momentum in FY 2020, which started in July, as it reaps the rewards of the government's market-friendly reforms, and is supported by strong government investment spending and a tighter labour market. However, still-fragile government finances, an uncertain global trading environment, and recurring security problems weigh on the outlook.
"It explained that the annual economic growth accelerated in the fourth quarter (Q4) of FY 2019, which ran from April to June. The acceleration appears to have been supported by strong fixed investment, thanks to the government's ongoing infrastructure drive, and healthy private consumption, buttressed by a recent drop in the unemployment rate," it stated.
Moreover, the Africa Cup of Nations, which ran in June-July, should have boosted exports of services. Meanwhile, at the start of July, the government cut energy subsidies as part of agreed-to reforms under its three-year financial support programme with the IMF.
Notably, the government was granted on 24 July the final disbursement of $2bn from the total
$12bn available under the IMF programme. With the programme now complete, the IMF urged the government to continue building a market-based economy in the future.
In terms of total investments, Focus Economics expects them to grow by 11%in FY 2020, expecting also public debt to record 85.2% of the GDP in FY 2020.
The CBE report stated that in 2018, public debt represented 83.3% of the GDP.
Regarding inflation, Focus Economics stated that inflation tumbled to 9.4% in June from 14.1% in May, closing in on the midpoint of the CBE's Q4 calendar year (CY) 2020 target range of 9.0% plus or
minus three percentage points.
"Inflation is seen accelerating again from July due to the energy subsidy cuts, although the recent appreciation of the pound should feed into prices and moderate any uptick. Our panellists expect inflation to average 12.1% in CY 2019, which is down 0.3 percentage points from last month's forecast, and 9.7% in CY 2020," Focus Economics revealed.
At its most recent monetary policy meeting on 11 July, the CBE left the overnight deposit rate at 15.75%. The decision came on the back of concerns that inflation could accelerate, after slowing in June, due to subsidy cuts.
"The next meeting is set for 22 August. Looking ahead, most panellists see some monetary easing by year-end. Our panellists expect the overnight deposit rate to end CY 2019 at 14.42% and CY 2020 at
12.25%," it forecasts.

Clic here to read the story from its source.