EBRD pre­dicts 4.5% growth in Egypt in FY 2017/2018

THE GROWTH IS SUP­PORTED BY ECO­NOMIC RE­FORM, EX­PORT RE­BOUND, AND TOURISM SEC­TOR RE­COV­ERY

The Daily News Egypt - - Business -

The Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment (EBRD) ex­pected an eco­nomic growth of 4.5% in the fis­cal year (FY) 2017/2018, ac­cord­ing to its lat­est Re­gional Eco­nomic Prospects re­port pub­lished Tues­day.

The re­port said that the eco­nomic growth was sup­ported by re­cent re­form mea­sures, con­tin­ued re­cov­ery in the tourism sec­tor, and ex­port re­bounds in Egypt.

Ac­cord­ing to the re­port, Morocco is the only coun­try in the EBRD’s south­ern and eastern Mediter­ranean (SEMED) re­gion that is ex­pected to see a slow­down in growth dur­ing 2018,as the base ef­fect from the agri­cul­tural re­bound in 2017 (af­ter a very poor 2016) is re­moved.

Av­er­age growth across the EBRD re­gions is seen at 3.3% this year, com­pared to 1.9% in 2016, an in­crease of 0.9%.

The growth has ac­cel­er­ated in 27 of the EBRD’s economies this year, the first time that such a broad up­turn has been seen since 2010. All economies in the re­gion, ex­cept Azer­bai­jan and FYR Mace­do­nia, saw pos­i­tive growth in the first half of the year.

Sev­eral coun­tries, notably Ro­ma­nia and Turkey, are en­joy­ing growth rates com­pa­ra­ble to the pre-cri­sis lev­els of the mid-2000s.

EBRD’s chief econ­o­mist Sergei Guriev said, “The broad-based re­cov­ery is a very wel­come de­vel­op­ment. It also cre­ates a win­dow of op­por­tu­nity to carry out re­forms that will en­sure the sus­tain­abil­ity of the stronger growth rates over the longer term.”

De­spite the re­cent ac­cel­er­a­tion in eco­nomic out­put, the EBRD ex­pects av­er­age growth to re­main slightly be­low that of other com­pa­ra­ble emerg­ing mar­kets.

AV­ER­AGE GROWTH ACROSS THE EBRD RE­GIONS IS SEEN AT 3.3% THIS YEAR

EBRD’s chief econ­o­mist Sergei Guriev

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