Egyptian economy to grow 5.9% in FY19/20 IMF

Cairo – The Egyptian economy is expected to grow by 5.9% during the fiscal year 2019/2020, while inflation is expected to reach 7.4% in FY20/21, according to the International Monetary Fund’s fifth and final review of Egypt’s economic reform programme.

The North African country’s economy is forecast to grow 6% in the medium range, while the debt-to-GDP ratio is expected to hit 70% by 2024, the IMF revealed. Egypt’s primary surplus reached 2% in FY18/19.

“Egypt has successfully completed the three-year arrangement under the Extended Fund Facility and achieved its main objectives. The macroeconomic situation has improved markedly since 2016, supported by the authorities’ strong ownership of their reform program and decisive upfront policy actions,” the Fund said.

The IMF expected that Egypt’s total deficit would shrink to 8.2% of GDP in FY18/19 and the debt-to-GDP ratio would decline to 85% at the end of June 2019.

“The outlook remains favourable and provides an opportune juncture to further advance structural reforms to support more inclusive private-sector led growth and job creation. Deepening and broadening of effective reforms is critical to underpin the positive outlook for growth and unemployment,” the US-based organisation noted.