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Egypt’s economic growth to rise to 5% in 2019 – Moody’s

Egypt’s economic growth to rise to 5% in 2019 – Moody’s
Egypt’s economic growth is expected to accelerate to 5% by 2019 and 5.5% by 2021

Cairo – Mubasher: Egypt’s economic growth is expected to accelerate from 4.2% in 2017 to 5% by 2019 and 5.5% by 2021, according to a recent report by Moody's Investors Service.

Moody’s has attributed these estimates to structural reforms taken by the Egyptian government, which bolster more broad-based activity, compared to the mostly consumption-driven pre-reform growth model.

“Nevertheless, high debt levels, low debt affordability, large funding needs and relatively high debt roll-over rates increase Lebanon, Egypt, and Jordan's exposure to a sharper-than-expected rise in interest rates,” the report highlighted.

Fiscal consolidation is likely to be more challenging for Tunisia, Egypt, and Lebanon, the report added.

Four sovereigns in the Levant and North Africa region hold stable rating outlooks, while Morocco carries a positive outlook and Tunisia holds a negative outlook, Moody’s noted.

In July 2017, Moody’s forecast Egypt’s trade deficit to shrink gradually to about 3% of growth domestic product (GDP) by the end of 2020.