Egypt
Macroeconomic indicators have improved significantly over the past two years thanks to a bold reform programme. However, structural challenges related to a high level of state presence in the economy are keeping medium-term growth subdued, while the fiscal position remains heavily burdened by high domestic public debt levels.
Egypt’s macroeconomic environment has improved over the past quarter thanks to further easing of inflation, fiscal consolidation, and strong economic growth. The Egyptian economy has shown resilience despite stormy global economic waters, with GDP growth recording its highest level in over a decade last fiscal year. The country is in the final stages of the IMF reform programme, which has proved to be largely successful. Further reforms are needed to address structural impediments to economic growth. Nonetheless, medium-term growth prospects remain sound, thanks to recovering consumption as well as investment in Egypt’s key sectors. Politically, risk is still largely driven by economic hardship and acts of terrorism. Terrorist attacks will remain largely contained to North Sinai but could occur almost anywhere. In addition, demographic pressures and weak institutions mean political risk will remain elevated over the medium- to long term. (Source: Egypt Quarterly Update, published August 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-9.5 |
|
Consumer Price Index (% change y-o-y, avg) |
14.4 |
|
Current Account Balance (as a % of GDP) |
-2.3 |
|
Real GDP (annual % change) |
5.3 |
|
GDP per Capita, US$ |
2,812.5 |
|
Import Cover (months) |
6.5 |
|
Population, million |
98.4 |
| Total External Debt (as a % of GDP) |
34.9 |