[size=30]International Monetary Fund slows its growth forecast for Egypt's economy to 4.5 percent[/size]
Trend Press / New York
The International Monetary Fund (IMF) cut its forecast for Egypt's economic growth rate to 4.5 percent in the current fiscal year 2017/2018, from 4.8 percent earlier.
Earlier this month, the International Monetary Fund (IMF) said in a report published by the International Monetary Fund (IMF) that its forecast of economic growth earlier this month was between 5.25 percent and 5.2 percent in the current fiscal year.
The financial year begins in Egypt in early July and until the end of June of the following year in accordance with the General Budget Law.
On Tuesday, the International Monetary Fund issued a report on the occasion of its first review of Egypt's economic reform program on July 13.
After the first review, the fund decided to spend $ 1.25 billion, bringing Egypt's total of $ 4 billion of the total loan of $ 12 billion.
The IMF forecast that Egypt's international reserves will reach 30 billion dollars in the current fiscal year 2017/2018, even though they reached about 36.143 billion dollars at the end of last month.
Egypt's total public debt was expected to fall from 98 percent of GDP in the last fiscal year to 88 percent of GDP in the current fiscal year and 78 percent in 2020-2021.
He stressed that the risks facing the economic reform program stemmed from fragile stability, a harsh reform agenda and a possible deterioration of the security situation. "Deteriorating internal security can undermine market confidence and the business climate," he said.
Egypt has been struggling for years to attract foreign direct investment, streamlining business processes and opening up new investments in the local market.
The IMF noted in its report that the high and persistent inflation rate could pose a threat to macroeconomic stability and could hamper the credibility of the new monetary policy framework.
Egypt's annual inflation rate was 33.2 percent in August, up from 34.2 percent a month earlier.
The central bank has raised its key interest rates by 7 percent since the flotation of the pound on November 3, 2016.
The IMF pointed out that the Egyptian central bank aims to reduce inflation to below 10 percent in the medium term, and this will be possible after the effects of the first round of devaluation, and the reduction of energy support and VAT, provided that monetary policy is sufficiently tightened.
The IMF has suggested that upward pressure on spending, including wages, would further undermine the program's financial objective.
He pointed out that the decline in growth in Egypt's trading partners may weaken the demand for Egyptian production, "but lifting the ban on flying to the country will support tourism."
While the IMF said the foreign exchange market in Egypt was normal, he confirmed that the pound fell more than expected against the dollar after the float.
He pointed to the disappearance of the shortage of foreign currencies and the market (black) parallel, almost added to the differences between the prices of supply and demand for the dollar.
The dollar rose to around 17.63 pounds against 8.88 pounds before the float.