The World Bank (WB) on Monday 1642018 raised its forecast for the growth rate of the Egyptian economy to grow 5 percent in the 20172018 fiscal year from 4.9 percent in its latest report on the Middle East and North Africa، according to All Africa.
"As reform momentum is sustained، economic activity is expected to improve and imbalances are projected to narrow further. Real GDP is forecast to grow by 5 percent in FY18، and to increase gradually to 5.8 percent by FY20،" a fresh report issued by the World Bank read.
"Growth is expected to be driven by resilient private consumption and investment، in addition to a gradual pickup in exports (notably from tourism and gas)"، it added.
The budget deficit is expected to narrow to 9.8 percent of GDP in FY18. This is slightly higher than initially-budgeted، due to larger interest payments، higher international oil prices، and larger-than-budgeted exchange rates،" the World Bank said.
The fiscal consolidation program is expected to rely on revenue mobilization، in particular the increase in VAT receipts، in addition to energy subsidy reforms، it added.
The current account deficit is expected to narrow to 4.9 percent of GDP in FY18، from 6.6 percent of GDP in FY17، the report read.
Recent increases in allowances of the main social programs have helped weather the effects of inflation، it said.