The World Bank (WB) forecasts that Egypt's economic growth will accelerate to 5.6 percent in the 2018/19 fiscal year, and on an annual basis of 5.7% in 2019, as investment is supported by reforms that strengthen the business climate and as private consumption picks up.
In its report "Darkening Skies", the WB said that Egypt registered a growth rate of 5.3 percent in the past fiscal year, as tourism and natural-gas activity have continued to show strength. Its unemployment rate has generally fallen.
Policy reforms have contributed to an upgrade of its sovereign rating in August 2018. Fiscal adjustments in Egypt have also been steadily progressing, the report added.
Policy reforms in oil importers have helped promote innovation capacity among firms, according to the report.
Headline inflation in Egypt remains near its end 2018 target level of 13 percent, despite edging up recently. Core inflation has been contained and the central bank has conducted two policy rate cuts in 2018, despite tighter external financing conditions, the report said.