CAIRO: Egypt’s economy is projected to grow by 4.5 percent during fiscal year (FY) 2015/2016, up from 4.2 percent in the previous FY, EFG-Hermes Managing Director and head of research, Wael Ziada, said Monday.
The figure marks a significant improvement from an average of 2 percent growth in FY 2012/2013 and 2013/2014, and also approached the 5.5 percent rate before the January 25 Revolution in 2011, Ziada said at the Cityscape Egypt Real Estate Summit held in Cairo Monday.
“Balance of payments’ deficit is considered the major challenge facing Egypt’s economy, due to a drop in tourism revenues and foreign direct investment,” said Ziada.
To slash this gap, Ziada recommended that the government has to implement further fiscal consolidation to bolster the economy, he added.
Ziada further noted that budget shortfall shrank from 13 percent to 10 percent in FY 2015/2016, while it is projected to slow down to 8 or 9 percent in the coming years, which could help reduce a ballooning public debt.