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FINANCIAL NEWS
Egypt economy to grow 5.5 percent in FY2015-16
29 Jan 2015
(MENAFN) Egypt’s Finance Ministry said that it expects that the country’s economic growth will accelerate be between 5 and 5.5 percent during the next fiscal year, which ends in June 2016, adding that the country’s economic growth for the current year is projected at higher than 4 percent, Gulf Times reported.
The Ministry attributed these positive predictions to a rebound in manufacturing, upward revisions by ratings agencies such as Fitch as well as the sharp drop in the value Egypt’s debt, adding that their main focus is regain investors’ confidence in the country’s economy so that they would increase their investments.
To ensure that the economic growth will maintain its momentum, the central bank decided to cut the interest rate by half a percentage point and allowed the Egyptian pound to decline to a record low against the US dollar, in a move that is aimed at restoring investor confidence ahead of an economic summit in March.
The country, which economy has been struggling for the last four years due to political unrest, said that these instable conditions have resulted in its international reserves to decline to around USD15.3 billion by the end of December compared with more than USD36 billion four years earlier.
Egypt has been relying on assistance from Gulf nations like Saudi Arabia, the UAE and Kuwait during these times of instability, receiving USD16.6 billion in grants, deposits and fuel in the year ending last June, with the full aid totaling at about USD1.8 billion so far this fiscal year.
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