CAIRO: The International Monetary Fund said Egypt’s economy is projected to grow by five percent in 2020, according to its World Economic Outlook (WEO) released Tuesday.
Egypt’s revised budget for fiscal year (FY) 2015/2016, economic growth was projected at about five percent, compared to 4.2 percent during FY 2014/2015, and an average of two percent over the past three years.
The fund’s outlook for Egypt’s economy comes in line with a positive report issued by the IMF mission visit to Cairo in September to review recent economic developments since the Article IV Consultation mission in November 2014.
The IMF mission praised Egypt’s macroeconomic stabilization plans and wide-ranging structural reforms implemented so far.
“There have been positive economic developments since the mission’s last visit in Egypt. Some of the pledges made at the Egypt Economic Development Conference in March are already in the implementation phase,” said IMF’s mission head Chris Jarvis at the conclusion of their visit.
Egypt has adopted a five-year macroeconomic plan aimed to reduce the budget gap to (8- 8.5 percent) by 2018/2019, by applying subsidy and tax reforms.
Last July, Egypt’s government cut energy subsidies by 40 billion EGP ($5.6 billion,) to slash its budget deficit and ballooning public debt.