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Thursday, 10 January 2019

World Bank sees Egypt growth accelerating 0.2% faster this year

World Bank sees Egypt growth accelerating 0.2% faster this year: The World Bank sees Egypt’s economic growth accelerating 0.2% faster in 2019 than originally anticipated in 2018, according to its Global Economic Prospects 2019: Darkening Skies report, which it released yesterday. Nonetheless, the World Bank maintained its forecast for Egypt’s economic growth this year at 5.7%. The WBG sees growth accelerating to 5.9% and 6.0% in 2020 and 2021, respectively, buoyed by strengthening activity in the tourism and natural gas sectors coupled with policy reforms, fiscal adjustments, and the easing of the country’s unemployment rate.

GDP estimates differ, but plenty on analysts see stellar growth coming Egypt’s way: Egypt should see strong economic growth this fiscal year, FocusEconomics says. This fiscal year, economic growth should be robust thanks to higher government investment spending, rising natural gas production and an improving regulatory environment,” the firm said on Wednesday. It pointed to fiscal imbalances as a challenge though, predicting GDP to grow 5.2% this fiscal year and 5.3% in FY 2019-20.

EM growth expected to stall in 2019: Growth in emerging markets and developing economies (EDMEs) “is expected to stall at 4.2 percent in 2019, markedly below previous expectations. The forecast reflects the lingering effects of recent financial market pressure in some large economies … Growth is projected to plateau at 4.6 percent toward the end of the forecast horizon.” The report also puts global growth in 2018 at 3% and is forecasting 2.9% for this year.

You can read the full report here (pdf) or check out the Middle East and North Africa chapter here (pdf).

The story received some attention on the airwaves, with Yahduth fi Masr’s Sherif Amercovering the report (watch, runtime: 03:34).

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