Egypt GDP Q1 2018

Egypt

Egypt: Economy continues gathering pace in the January–March period

June 28, 2018

GDP increased 5.4% year-on-year in the January–March period (which is Q3 of Egypt’s 2018 fiscal year) according to the Ministry of Planning, up marginally from the 5.3% expansion in the October–December period and marking a multi-year high. As a result, GDP growth has now accelerated for six consecutive quarters, demonstrating that the economy is gathering momentum following a series of IMF-induced reforms that began in November 2016 with the floating of the pound.

Although comprehensive data has not yet been released, the Central Bank reported on 28 June that economic growth was supported by healthy investment, from both external and domestic sources. Investors were likely encouraged by healthy global growth, the weaker pound and increased interest in the domestic oil and gas sector. Overall, stronger economic growth also fits with PMI readings for the non-oil private sector in the January–March period, which recorded the highest average reading on record.

Looking ahead, Egypt’s economic panorama is increasingly positive. The continued fall in inflation observed through May, coupled with higher salaries and pensions in the public sector from July, should boost private consumption. Investment will benefit from recent reforms to improve the business environment, such as new industrial licensing, bankruptcy and foreign investment laws. However, the fiscal position remains vulnerable, with elevated public debt and a sizeable budget deficit, despite recent progress in curtailing costly subsidies.

FocusEconomics panelists expect GDP to expand 5.0% in FY 2019, which is unchanged from last month’s forecast, and 5.0% again in FY 2019.


Author:, Economist

Sample Report

Looking for forecasts related to GDP in Egypt? Download a sample report now.

Download

Egypt GDP Chart


Egypt GDP Q1  2018

Note: Year-on-year changes of GDP in %.
Source: Ministry of Finance (MoF) and FocusEconomics Consensus Forecast.


Egypt Economic News

  • Egypt: Central Bank leaves interest rates unchanged in February

    February 20, 2020

    At its monetary policy meeting on 20 February, the Central Bank of Egypt (CBE) left all interest rates unchanged for the second consecutive meeting.

    Read more

  • Egypt: Inflation accelerates slightly in January

    February 15, 2020

    Consumer prices increased 0.7% in January from the previous month due to higher food and beverage prices, contrasting the 0.2% month-on-month decrease in December, according to a monthly inflation note released on 15 February.

    Read more

  • Egypt: Non-oil private sector PMI plunges in January

    February 5, 2020

    Egypt’s Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, dropped to 46.0 in January from 48.2 in December, indicating a worse deterioration in business conditions in the sector over the previous month and the lowest reading in over two and a half years. Contributing to the downturn in January was the fastest contraction in output among Egyptian businesses in three years, which was largely due to a sharp fall in new orders, partly due to softer export demand for the fourth consecutive month.

    Read more

  • Egypt: Central Bank leaves interest rates unchanged in January

    January 16, 2020

    The Central Bank of Egypt (CBE) held interest rates steady at its monetary policy meeting on 16 January, leaving the overnight deposit rate at 12.25%.

    Read more

  • Egypt: Inflation jumps in December

    January 9, 2020

    Consumer prices decreased 0.2% in December in month-on-month terms, after decreasing 0.3% in November.

    Read more

More news

Search form