By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Opinion| Will the BRICS group give a lifeline to the Global South against the dominance of the US dollar?
    Opinion| Will the BRICS group give a lifeline to the Global South against the dominance of the US dollar?
    June 8, 2023
    AUR Capital concludes second securitized bond issuance of EGP 1.124bn 
    AUR Capital concludes second securitized bond issuance of EGP 1.124bn 
    June 8, 2023
    Matouk Bassiouny & Hennawy consults on more than 18 deals currently: Founding partner
    Matouk Bassiouny & Hennawy consults on more than 18 deals currently: Founding partner
    June 8, 2023
    Egypt’s petrochemicals exports surge 23% to $8.629bn in 2022
    Egypt’s petrochemicals exports surge 23% to $8.629bn in 2022
    June 8, 2023
    Trade exchange between Egypt, COMESA countries increases to $5.3bn in 2022: CAPMAS
    Trade exchange between Egypt, COMESA countries increases to $5.3bn in 2022: CAPMAS
    June 8, 2023
  • Politics
    PoliticsShow More
    Opinion| The suspension of Russia's participation in the START Treaty portends an imminent nuclear war
    Opinion| The suspension of Russia’s participation in the START Treaty portends an imminent nuclear war
    June 8, 2023
    Israel's neglect of Palestinian issue threatens regional, global security: Palestinian Foreign Ministry
    Israel’s neglect of Palestinian issue threatens regional, global security: Palestinian Foreign Ministry
    June 8, 2023
    Renewed clashes erupt in Sudan’s Omdurman, Khartoum
    Renewed clashes erupt in Sudan’s Omdurman, Khartoum
    June 8, 2023
    Abdel Ghaffar highlights Egypt’s government achievements in health sector during Africa Health ExCon
    Abdel Ghaffar highlights Egypt’s government achievements in health sector during Africa Health ExCon 
    June 8, 2023
    A legally binding agreement must be reached on GERD: Al-Sisi
    A legally binding agreement must be reached on GERD: Al-Sisi
    June 8, 2023
  • Interviews
    InterviewsShow More
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    May 31, 2023
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    May 25, 2023
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    May 8, 2023
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    April 29, 2023
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    April 18, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Egypt’s GDP growth rate expected to fall to 4% in 2017: World Bank
Share
Notification
Latest News
Egyptian drama and cinema industry: challenges and solutions
Egyptian drama and cinema industry: challenges and solutions
Cinema Culture
Opinion| The suspension of Russia's participation in the START Treaty portends an imminent nuclear war
Opinion| The suspension of Russia’s participation in the START Treaty portends an imminent nuclear war
Opinion Politics
Opinion| Will the BRICS group give a lifeline to the Global South against the dominance of the US dollar?
Opinion| Will the BRICS group give a lifeline to the Global South against the dominance of the US dollar?
Opinion Business
AI outperforms standard risk model for predicting breast cancer
AI outperforms standard risk model for predicting breast cancer
Science
AUR Capital concludes second securitized bond issuance of EGP 1.124bn 
AUR Capital concludes second securitized bond issuance of EGP 1.124bn 
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Egypt’s GDP growth rate expected to fall to 4% in 2017: World Bank
Business

Egypt’s GDP growth rate expected to fall to 4% in 2017: World Bank

Mohamed Samir
Last updated: 2017/01/11 at 4:27 PM
By Mohamed Samir 4 Min Read
Share
SHARE

In its report “Global Economic Prospects”, the World Bank stated that among oil-importing economies, growth in Egypt has slightly declined to 4.3 % in fiscal year (FY) 2016. This comes as a result of foreign currency shortages which feed manufacturing and a decline in tourism after the crash of a Russian aeroplane in the Sinai Peninsula in October 2015. However, Egypt’s GDP is envisaged to bounce back to 5.4% in 2019.

Moreover, falling oil prices helped Lebanon, Morocco, and Tunisia lower their current account deficits in 2016. Egypt, on the other hand, experienced balance of payment pressures stemming from a drop in remittance inflows and weakened tourism activity following several high-profile terrorist attacks.

More than 70% of remittances to Egypt came from GCC countries in 2014 and 2015.

Consequently, the report indicates that Egypt’s progress in reducing its current account deficit in the three years leading up to 2014 was in vain, with the deficit registering 5.5% of the GDP in FY 2016. The report added that Egypt’s debt stands at nearly 100% of the GDP, almost 95% in Jordan, and close to 145% in Lebanon.

Furthermore, oil-importing countries are expected to experience broad-based growth acceleration during the forecast period, with growth returning to just under its long-term average by 2019. In Egypt, the pace of growth, currently predicted to rise to 5.4% in FY 2019, is highly dependent on two factors: how quickly the economy can adjust to the flotation of the Egyptian pound last November, and how rapidly the government applies fiscal consolidation.

The report indicates that the sharp recovery of investment growth in 2015 to 4% was the result of the efforts to address infrastructure needs in Egypt and Morocco, the two largest oil-importing economies in the region. The private sector contributed more strongly to investment growth in Egypt than the public sector—a typical pattern among oil importers.

Even with the recovery in 2015, investment growth in oil-importing countries was still below the long-term average of 5.1%. The sharpened balance of payments and fiscal pressures in Egypt were likely accompanied by weaker investment growth in 2016. However, recently implemented structural reforms may lift investment in the medium-term.

In regards to inflation, in most oil-importing economies it remains low. However, Egypt is an exception as high rates of inflation were accompanied by a growing gap between the official and unofficial exchange rates for much of 2016, though the gap closed following the flotation of the Egyptian pound in early November.

The report concluded that although banking sector indicators remain sound in Egypt, reliance on banks to finance growing government budget deficits and the foreign currency shortage is negatively affecting and restraining business and household borrowing.

Consequently, the Central Bank of Egypt must navigate the recent move to a more liberal exchange rate regime. Gradually reducing inflation is a priority, including ensuring that the new value-added tax results in only a one-time increase in inflation rather than an ongoing spiral.

You Might Also Like

Opinion| Will the BRICS group give a lifeline to the Global South against the dominance of the US dollar?

AUR Capital concludes second securitized bond issuance of EGP 1.124bn 

Matouk Bassiouny & Hennawy consults on more than 18 deals currently: Founding partner

Egypt’s petrochemicals exports surge 23% to $8.629bn in 2022

Trade exchange between Egypt, COMESA countries increases to $5.3bn in 2022: CAPMAS

TAGGED: Egypt, GDP, World Bank
Share this Article
Facebook Twitter Email Print
By Mohamed Samir
Mohamed Samir Khedr is an economic and political journalist, and analyst specialising in geopolitical conflicts in the Middle East, Africa and the Eastern Mediterranean. Over the past decade, he covered Egypt's and the MENA region's financial, business, and geopolitical updates. He is currently the Executive Editor of the Daily News Egypt. Twitter: https://twitter.com/Moh_S_Khedr LinkedIn: https://www.linkedin.com/in/mohamed-samir-khedr/
Previous Article Photos of alleged kidnapped Egyptian workers tortured in Libya cause outrage
Next Article Trump’s team promises ‘soft sensuality’ for Inauguration Day
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Egyptian drama and cinema industry: challenges and solutions
Egyptian drama and cinema industry: challenges and solutions
Cinema Culture
Opinion| The suspension of Russia's participation in the START Treaty portends an imminent nuclear war
Opinion| The suspension of Russia’s participation in the START Treaty portends an imminent nuclear war
Opinion Politics
Opinion| Will the BRICS group give a lifeline to the Global South against the dominance of the US dollar?
Opinion| Will the BRICS group give a lifeline to the Global South against the dominance of the US dollar?
Opinion Business
AI outperforms standard risk model for predicting breast cancer
AI outperforms standard risk model for predicting breast cancer
Science
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?