Zczc
BCN-43
IMF-EGYPT-GDP
IMF expects Egypt’s current account deficit to shrink to 2.6 pct of GDP
CAIRO, July 13, 2018 (BSS/Xinhua) – The International Monetary Fund (IMF)
predicted Thursday Egypt’s current account deficit will fall to 2.6 percent
of its GDP in 2018-2019 from 4 percent in its previous review.
The IMF, in a report published on its website, said the macroeconomic
conditions in Egypt have continued to improve during 2017-2018, with external
and fiscal deficits narrowing.
The report expected Egypt’s GDP to grow up to 5.5 percent in the same
period.
It added the ongoing monetary policy stance appears appropriate to contain
the effects of the rising fuel and electricity prices.
In June, Egypt increased fuel and electricity prices by up to 66.6 percent
and 26 percent respectively, as required by the IMF to continue the
implementation of the country’s economic reform program.
Over several years of instability due to political turmoil, Egypt has been
suffering economic recession in the past years. It devaluated its local
currency in November 2016 as part of a strict three-year economic reform
program based on austerity measures, including fuel and energy subsidy cuts
and tax hikes.
The liberalization of the Egyptian pound’s exchange rate encouraged the
IMF to support Egypt’s economic reform plan with a 12-billion-U.S. dollar
loan, two thirds of which has been delivered already.
BSS/XINHUA/HR/1355