Egypt is on the right track to achieve comprehensive financial and economic reforms, and spending-led growth estimated at 5 percent of GDP, Britain’s Standard Chartered Bank said Sunday.
In a recent report, Standard Chartered said the Egyptian government in its reform program, in cooperation with IMF, is lowering its debts by 16 percent points, to hits 86.3 percent by June 2019, down from 103.5 percent in 2017.
Inflows from the tourism sector and remittances sent by the Egyptian living abroad have given a hand in narrowing the current account deficit, it stated.
The report expected more narrowing in the current account as the rise in gas exports started to pay-off, adding the Central Bank of Egypt (CBE)’s adopted monetary policy has led to a slowdown in the inflation.
It estimated inflation to reach 11.1 percent by the end of the running financial year by June 2020, which could help the CBE in lowering the interest rate.
The report advised the global institutions and investors to increase the weight of their investment portfolios in the Egyptian market, which is expected to outperform other emerging market peers.