Egypt condemns Houthi attacks on Saudi territories    NCW files complaint with Public Prosecutor over harassment, rape allegations circulated online    COVID-19 fatalities among Egyptian doctors rise to 116: EMS    Egypt reports 1,324 new COVID-19 cases, 79 fatalities    Egypt says no breakthrough reached on second day of AU-sponsored GERD talks    UAE adopts new government structure, full announcement to come on Sunday    Ministry of Culture announces schedule for resumed theatrical, musical activities    WHO halts hydroxychloroquine, HIV drugs in COVID trials after failure to reduce death    Biggest lenders in Canada join boycott of Facebook platforms    CIAM targets EGP 10bn asset management portfolio year-end    Virtual talks on Ethiopia's disputed dam resume amid consensus hopes    Egypt sees 13.5m mobile wallets end-May: NTRA    Turkish deals with Libya's Sarraj illegal: LNA    Brighton nearly safe after beating last-place Norwich 1-0    Berlin metro to change derogatory station name by end of year    Egypt to hold Senate elections on 11-12 August: NEC    No days off for Liverpool under Klopp: Oxlade-Chamberlain    5 killed, 10 injured in bomb attack in southwest Somalia    Banks in Egypt switch to IBAN standard to ease cross-border transactions    Iran imposes new curbs as coronavirus toll rises    Russia says China would be needed in expanded G7 summit: TASS    Hurghada Airport receives two flights carrying 383 tourists from Ukraine and Belarus    TUI opens bookings to Egypt starting September    Egypt gets its fifth new aircraft from Airbus    Egypt dismisses rumours of imposing tax on bank deposits    Egypt reopens 5 museums, 8 archaeological sites and operates 171 international, domestic flights    Arsenal forward Martinelli signs new long-term deal    Australia's Victoria reports 108 new coronavirus cases, biggest jump since March    $50 bln more required for middle-and low-income Arab countries to recover from COVID-19: ESCWA    GERD talks between Egypt, Ethiopia and Sudan to continue Saturday    GERD talks between Egypt, Ethiopia and Sudan resume on Friday    Rudolfo Anaya, 'godfather' of Chicano literature, dies at 82    Egypt and Jordan's Foreign ministers discuss annexation of West Bank    Lebanon's negotiations with IMF on hold pending start of reforms – minister    Moderna delays coronavirus vaccine trial – report    Egypt developing four WHO-registered vaccines to treat coronavirus patients    Egypt's Zamalek to continue training Thursday, but domestic league participation unclear    Liverpool boss Klopp happy with African Nations Cup postponement    Egypt's cultural activities to resume mid-July    Federation of Egyptian Banks denies funding GERD: eletreby    Saudi development authority starts executing phase I of giant cultural project    Don't miss Al-Hadra troupe's two concerts at El-Sawy Culturewheel    Egypt's President Sisi opens Baron Empain Palace, two int'l airports    11 coronavirus cases detected at Egyptian Premier League clubs – EFA    Egypt to host World Handball Championship on time despite COVID-19: EHF President    Liverpool's Egyptian winger Salah fit for Crystal Palace clash – coach Klopp    Egypt's parliament Oks amendments to House law amid differences over election    CAF draws timeline for resumed continental championships amid COVID-19    







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.