Egypt’s economic growth expected to decrease to 3.3% in 2016: IMF

Mustafa Sakr
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Economic analysts agree with IMF report on Egypt’s economic status (AFP File Photo)

Washington, Mustafa Sakr

The International Monetary Fund (IMF) issued its World Economic Outlook (WEO) reports on Tuesday predicting a 3.1% growth in emerging markets in the next two years, compared to 2.5% in 2015.

The report predicted a global economic growth of 3.3% during 2016. However, in January this fell by 0.2%.

The IMF previously projected potential economic growth in the United States at 2.6% in January, but decreased to 2.4% for the current year in the most recent report.

“In Egypt, an oil-importing country, growth being expected to decrease to 3.3% in 2016 compared to 4% in 2015,”.

Consumer prices in Egypt are projected to rise by 10.7% in 2016, compared to 11% in 2015.

Furthermore, the current account balance in Egypt is expected to increase to 5.3% of GDP in 2016 and 2017, compared to 3.7% in the current year.

Inflation in Egypt was 11% in 2015 and the IMF expects it will decrease to 9.6% and 9.5% in 2016 and 2017 respectively.

The IMF expects that Iraq’s current account balance, which was 0.8% of GDP in 2015, will rise to 1.2% in 2016 and then 0% in 2020.

The IMF expects a slight rise in unemployment rate in Egypt, up to 13% in 2016 compared to 12.9% in 2015, and it is expected to reach 12.4% in 2017.

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Mostafa Sakr is the Chairman of The Daily News Egypt
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