Cairo – Mubasher: Egypt’s real gross domestic product (GDP) growth is expected to accelerate to 5.8% in 2020 from 5.6% in 2019, the African Development Bank (AfDB) said in a recent report.  

According to its report “African Economic Outlook 2020”, AfDB ascribed the expected economic growth to the country’s economic reform programme which has been implemented since 2016.

The growth is also forecast to be driven by “the recalibration of government’s social inclusion programmes away from general subsidies on energy products to targeted transfers and improvements in the business environment.”

Moreover, tourism, construction, and oil and gas sectors are projected to boost the country’s economic growth this year.

The government’s plan which included the introduction of value-added tax (VAT) and a gradual phase out of energy subsidies led to narrowing the fiscal deficit to 8.7% of GDP in 2019 from 12.5% in 2016.

Government debt to GDP ratio declined to 89.5% in 2019 from 103% in 2017, while the current account deficit shrank to 2.3% last year.

In August 2019, Egypt’s foreign exchange reserves recorded an all-time high at $44.96 billion.