Egypt Economic Outlook
February 6, 2018The economy is slowly turning a corner. In January international reserves rose for the 15th straight month, while the PMI reading suggested business conditions largely stabilized, thanks in part to greater new export orders. In addition, the primary budget deficit for July–December fell to a multi-year low, due to tight wage bill control and higher tax revenue. The improved macroeconomic position led Fitch Ratings to recently revise its outlook to positive. The government is pushing ahead with reforms: On 28 January parliament passed Egypt’s first bankruptcy law, to simplify the bankruptcy procedure and entice foreign investment. However, the country still faces myriad challenges, and the IMF recently urged the government to boost the private sector and strengthen the labor market. On the political front, President el-Sisi looks set to romp home in presidential elections scheduled for end-March. Most challengers have dropped out of the race due to intimidation, with the one remaining candidate accused by some of being in cahoots with the current leader.
Egypt Economic GrowthGrowth should accelerate in FY 2018. Investment will likely rise sharply, boosted by stronger business sentiment and an improved regulatory environment, while the external sector will benefit from the weaker pound. However, the elevated debt burden could become a pressing concern if reform momentum ebbs. Met the why particular analysts expect GDP to expand 4.5% in FY 2018, up 0.1 percentage points from last month’s forecast, and 4.9% in FY 2019.
Egypt Economy Data
5 years of Egypt economic forecasts for more than 30 economic indicators.
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|Bond Yield||14.25||0.0 %||Feb 20|
|Exchange Rate||17.71||0.0 %||Feb 20|
|Stock Market||1,511||0.53 %||Feb 20|
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Egypt Economic News
February 5, 2018
The Emirates NBD Egypt Purchasing Managers’ Index (PMI) rose from 48.3 in December to 49.9 in January, signaling broadly stable business conditions in the non-oil private sector.
January 11, 2018
In December, urban consumer prices fell from the previous month for the first time in two years, dropping 0.21% and contrasting November’s 0.97% uptick.
December 28, 2017
At its 28 December monetary policy meeting, the Central Bank of Egypt (CBE) kept interest rates steady for the fourth consecutive meeting, following substantial monetary tightening earlier in 2017 to keep inflation in check.
December 11, 2017
In November, urban consumer prices rose 0.97% from the previous month, down from October’s 1.11% uptick.
December 4, 2017
The Emirates NBD Egypt Purchasing Managers’ Index (PMI) fell from 50.7 in November to 48.3 in December, signaling a worsening in operating conditions after briefly moving into positive territory for the first time in over two years in the prior month.