According to the World Bank’s (WB) report – Global Economic Prospects June – Egypt’s annual growth is forecast to ease to 3.3% in the fiscal year (FY) 2015/16, which is ending on 30th June, 2016, reported Daily News Egypt. The annual growth is estimated to reach 4.4% in FY 2016/17, falling below the government’s target of 5%.
The drop in the percentage from January’s projections is -0.4% for FY 2015/16 and -0.3% for FY 2016/17.
According to the report, the Central Bank of Egypt (CBE) will need to continue efforts to rein in inflation against the backdrop of stabilizing oil prices, subsidy reductions, and devaluation in the Q1 of 2016.
The report concludes that high inflation remains a challenge in Egypt. Fiscal and current account deficits are significant and are worsening, despite the extended period of low-priced oil imports
The World Bank has downgraded its 2016 global growth forecast to 2.4% from the 2.9% pace projected in January, as the bank informed on its website. The move is due to sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade, and diminishing capital flows. Growth will pick up to 2.8% in 2017, the lender projected, informed Bloomberg.