Egypt’s Macroeconomic Outlook Your Investment Reference

Egypt The economic situation in Egypt seems to be stabilizing recently following a period of instability that caused tourism receipts and FDIs to substantially decline, and foreign currency reserves to dwindle. Source: CBE BLOMINVEST Research Department

Egypt However, the authorities floated the exchange rate and introduced several reforms to tighten the external and fiscal deficits. Egypt is expected to start bearing the fruits of these measures in the FY 2016/17. Source: CBE, BLOMINVEST Research department Source: CBE BLOMINVEST Research Department

Main Reforms Introduced by the Egyptian Authorities The IMF recently granted Egypt a $12B Extended Fund Facility to restore macroeconomic stability and promote inclusive growth. Main Reforms Introduced by the Egyptian Authorities Liberalizing the exchange rate regime and devaluating the Egyptian pound in November 2016 Increasing interest rates to contain inflationary pressures Decreasing fuel and electricity subsidies by 3% of GDP in FY 2014/15 with a plan to gradually phase out of these subsidies. Increasing fuel prices by 30-47 % in November a day after floating the exchange rate Parliamentary approval of the Value Added Tax (VAT) in August Source: Bloomberg BLOMINVEST Research Department