1. Egypt’s Macroeconomic Outlook
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2. 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

3. 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

4. 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 % in November a day after floating the exchange rate
Parliamentary approval of the Value Added Tax (VAT) in August
Source: Bloomberg
BLOMINVEST Research Department