airo - Mubasher: Growth in the Middle East and North Africa was stable in 2015, at 2.5%, but it is expected to jump to more than 1% in 2016 and 2017, according to the Global Economic Prospects report compiled by the World Bank.

In Egypt, growth is forecasted to moderate to 3.8% in fiscal year 2015/16 as the tourism sector weakens following the October plane crash in the Sinai and a foreign currency shortage persists for at least part of the year.

Meanwhile, growth in FY2016/17 should rise to 4.4%, driven by an uptick in investment.

Rising growth in Egypt would have only a modest impact on the rest of the region, noted the report.

Egypt's fiscal deficit is expected to fall or remain broadly stable after slashing of energy subsidy and imposing higher electricity tariffs.  

The report pointed out that, Egypt's contraction in foreign currency inflows that would accompany a shrinking tourism industry would not only negatively impact growth, but would exacerbate the existing foreign currency shortage.

Egypt faced number of terrorist attacks through 2015, which negatively effected the tourism sector.

Fiscal adjustment can also be accelerated through the introduction of a second round of energy subsidy cuts and a value-added tax has stalled.

Across the Middle East and North Africa, lack of improvement in labor markets and living conditions increases the risk of further social including Egypt which came among the countries have significant gaps relative to other developing countries with regard not only to youth employment, but also the quantity and quality of education and skills mismatches, stated the report.