Egypt's FM meets with Algerian counterpart for talks in Cairo    Agency: Trump is due $1M tax refund for Chicago skyscraper    Egypt's Sisi urges developing banking sector performance, stabilising monetary performance    Sudan hopes Ethiopia will come to its senses: FM Al-Mahdi    Governor of Egypt's South Sinai discusses investment, tourism with Serbian officials    French security forces brace for anti-health pass protests    Belarus leader ready to invite Russian troops 'if necessary'    Athletics: Brilliant Thompson-Herah leads Jamaican sweep in 100m    Toothless Egypt out of Olympics after 1-0 loss to vibrant Brazil    Egypt rolls out QR code certificates for coronavirus vaccination    Regional forces join offensive against Mozambique extremists    Egypt reports 45 new coronavirus cases, 4 deaths on Friday    Vaccinated people can carry as much virus as others: Study    Swimming: US star Dressel wins 3rd goal in Tokyo, sets 100m fly world record    'Cooperation with Nile Basin countries key pillar of Egypt foreign policy': Irrigation minister    Scarlett Johansson sues Disney over its streaming release of 'Black Widow'    Hatif Libya, U.S. Infinera sign deal to upgrade Libya's fibre optic network    Russia to send delegation to Egypt in August for its mega industrial zone project    Fitch forecasts Egypt's real GDP growth of 5.5% in FY2022/23    Qatar appoints ambassadors to Egypt and Libya    Egypt's transport start-up SWVL preps for Nasdaq listing after merger with Queen's Gambit    Father builds exoskeleton to help wheelchair-bound son walk    Russian delegation to visit Egypt today for Sharm al-Sheikh, Hurghada security checks    Remembering Roushdy Abaza: Egyptian silver screen's first man    Russia flights to Egypt resorts of Sharm el-Sheikh, Hurghada to resume on August 9    Orange Egypt Introduces Amazon Prime Video    Tokyo Olympics: Cautious opening ceremony, shy start for Egyptians in competitions    Mallawi Museum in Upper Egypt holds recycling workshop for children during Eid Al-Adha    Egypt keen on stable tax policies to attract more investors: Finance Minister    Niagara Falls illuminated in Egyptian flag to mark 23 July Revolution anniversary    Thanaweyya Amma exams resume after Eid Al-Adha holidays    Sudan declares state of emergency as water goes beyond Merowe Dam capacity    Egypt, Japanese Olympic Committee discuss boosting sports cooperation    1 child orphaned every 12 seconds due to COVID-19-associated death: World Bank    Capital flows into EM keep recovering after March 2020 slump: Central Bank of Egypt    US emphasises AU's role in mediating Ethiopian damdispute    Ethiopia ready to resume dam talks with no legally binding agreements: Ethiopian official    Sunken city of Thônis-Heracleion in Egypt's Abu Qir bay yields new archaeological treasures    New films, concerts, and destinations for Eid Al-Adha holidays    Egypt, Oman discuss enhancing bilateral economic, investment relations    Al Ahly v Kaizer Chiefs: Cairo giants eye 10th CAF Champions League title    Etisalat Misr partners with Bassita to contribute to a Cleaner Nile    Tunisia hopes to have a UN role in resolving Egypt-Ethiopia dam dispute    Egypt denounces Ethiopia's move to start second filling of giant dam    APO Group enters new exclusive agreement with Getty Images on African press releases and images    On International Museum Day, Egypt opens two new museums at Cairo Airport    Egypt's Ahly is establishing a new stadium, expected to be 'sports complex'    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    







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



Egypt's economic growth to remain strong in medium-term: Fitch
Macroeconomic, political stability support Egypt's positive growth 2017 to current health crisis
Published in Daily News Egypt on 03 - 06 - 2020

Egypt's economic growth will remain strong in the medium-term thanks to strong investment and a recovering consumer environment, according to Fitch Solutions.
Fitch analysts expect growth to remain strong in the next five years. The economy will continue to be dominated by private consumption, though fixed investment will grow the fastest in the short-to-medium term.
From 2017 until the coronavirus (COVID-19) crisis hit, Egypt's positive growth story was effectively one of pent-up demand that had been unleashed by increased macroeconomic and political stability. This process will not necessarily be nullified by the crisis, but perhaps dampened and delayed.
Fitch added that sustained strong growth rates over the long-term will also require more structural reforms. The next few years will prove formative in this regard. With IMF-led reforms having helped restore macroeconomic stability, the government can now move onto making more structural changes to the economy.
Government consumption as a share of GDP will likely decline over the long-term, barring some backtracking in the next couple of years due to the need for coronavirus-related stimuli.
The Al-Sisi government has shown a strong commitment to reducing the fiscal deficit, and looks likely to remain in power for the foreseeable future. Fitch analysts also believe the authorities will be keen to shift resources away from consumption onto capital spending.
On the other side, consumer price inflation will gradually slow in Egypt over the next few years, following two years of very high levels of price growth.
Fitch analysts forecast inflation to average 5.4% over the coming decade, compared to a peak of 29.6% in 2017 and 9.4% in 2019. This view is primarily based on their expectation for subsidy cuts to become less frequent, although a very weak oil price outlook also underpins this forecast.
At Fitch Solutions, analysts believe the Central Bank of Egypt (CBE) will hold the overnight lending rate at 10.25% over the remainder of 2020. The CBE will likely return to easing in 2021, and they expect the overnight lending rate will end 2021 at 9.75%.


Clic here to read the story from its source.