Egypt’s economic recovery FY2018/19: Capital Economics

CAIRO – 6 July 2017: Capital Economics anticipated Egypt’s economic recovery in fiscal year 2018/19. They are expecting a bright outlook for Egypt.

In a 5 July report, Capital Economics believed the worst stage in the economy is over, forecasting the inflation to drop over the next 12-18 months.

The report said lowering interest rates will not happen before the end of 2017.

“A weaker pound has boosted competitiveness which should support stronger export growth and dampen import demand,” the report said. In addition, ongoing economic reforms should bring investors back to Egypt.

Capital Economics expected fiscal policies to continue to trim the growing budget deficit. “But the progress made over the past year means that there should be hope for the pace of austerity to ease,” it noted.