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Thursday, 25 July 2019

Egypt’s economic growth to slow to 5.5% in FY2019-2020 – Reuters poll

Egypt’s economic growth to slow slightly to 5.5% in FY2019-2020 -poll: Egypt’s economic growth will slow slightly to 5.5% in FY2019-2020, from 5.6% last year, according to a Reuters poll of economists. The government’s budget eyes GDP growing at a 6% clip over the next 12 months. “Even as leading economic indicators point toward weak consumer spending and stress on local firms, rising investment and government spending are supporting higher economic growth,” Nadene Johnson, an economist at NKC African Economics, told Reuters. “Medium-term growth prospects remain promising thanks to the natural gas sector and higher investment, while consumption is expected to recover following the completion of inflationary reforms.”

Inflation is expected to average 13% in FY2019-2020, 10.9% in FY2020-2021 and 9.0% in FY2021-2022, economists predicted. Egypt’s inflation rate dropped to 9.4% in June, but is expected to pick up again this month on the back of the last round of subsidy cuts, which prompted the central bank to leave interest rates on hold earlier this month.

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