WASHINGTON, April 17, 2018 (MENA) - The World Bank (WB) on Monday raised its forecast for the growth rate of Egypt's economy to grow five per cent in the 2017/18 fiscal year from 4.9 per cent in its latest report on the Middle East and North Africa. Egypt's fiscal year begins on July 1. "As reform momentum is sustained, economic activity is expected to improve and imbalances are projected to narrow further. Real GDP is forecast to grow by five per cent in the fiscal year 2017/18, and to increase gradually to 5.8 per cent by 2019/20," a WB report said. "Growth is expected to be driven by resilient private consumption and investment, in addition to a gradual pickup in exports (notably from tourism and gas)", it added. The budget deficit is expected to narrow to 9.8 per cent of GDP in 2017/18. This is slightly higher than initially-budgeted, due to larger interest payments, higher international oil prices, and larger-than-budgeted exchange rates," the World Bank said. "The fiscal consolidation programme is expected to rely on revenue mobilisation, in particular the increase in VAT receipts, in addition to energy subsidy reforms," it added. The current account deficit is expected to narrow to 4.9 per cent of GDP in FY18, from 6.6 per cent of GDP in 2016/17, according to the WB report.
