The Institute of International Finance (IIF) predicted Egypt’s GDP will rise to 3.7 % in the coming year, compared to 2.1 % in the year of 2014, according to Egypt Independent.
The IIF's report "MENA Region: Recovery Buffeted by Geopolitical Risks" said, "A moderate economic recovery is underway, bolstered by efforts to revive investment, including the plan for Suez Canal expansion, along with other state-led projects."
A more secure political order, combined with continued large financial support from the UAE, Saudi Arabia and Kuwait, has shored up investor sentiment, leading to a significant pickup in economic activity in recent months, the report added.
"On the other hand, fears of social rupture as the Morsy regime sought to impose an Islamist ideology paved the way for a return to a form of authoritarianism, one that nevertheless seems mindful of the country’s recent experience," the report said.
Despite two governmental stimulus packages of a combined 3.3 % of GDP, real GDP growth remained weak at 2.2 % in FY2013/14. Low execution levels and disruption in the energy and tourism sectors has held back economic activity, the report explained.
The budget deficit narrowed by one %age point of GDP to 12.6 % thanks to official grants, estimated at 2.6 % of GDP in FY2013/14, the report showed.
The IIF's report "MENA Region: Recovery Buffeted by Geopolitical Risks" said, "A moderate economic recovery is underway, bolstered by efforts to revive investment, including the plan for Suez Canal expansion, along with other state-led projects."
A more secure political order, combined with continued large financial support from the UAE, Saudi Arabia and Kuwait, has shored up investor sentiment, leading to a significant pickup in economic activity in recent months, the report added.
"On the other hand, fears of social rupture as the Morsy regime sought to impose an Islamist ideology paved the way for a return to a form of authoritarianism, one that nevertheless seems mindful of the country’s recent experience," the report said.
Despite two governmental stimulus packages of a combined 3.3 % of GDP, real GDP growth remained weak at 2.2 % in FY2013/14. Low execution levels and disruption in the energy and tourism sectors has held back economic activity, the report explained.
The budget deficit narrowed by one %age point of GDP to 12.6 % thanks to official grants, estimated at 2.6 % of GDP in FY2013/14, the report showed.
Source:
Mubasher
