World Bank: Egypt's GDP, non-oil cash flows could grow significantly

World Bank: Egypt's GDP, non-oil cash flows could grow significantly

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Wed, 16/01/2013 - 13:59

The World Bank has predicted that Egypt's GDP will grow at a rate of 3.8 percent in the fiscal year 2013-2014, before increasing to 4.7 percent in 2014-2015.

In its new report, Global Development Horizons 2013, the bank predicted that Egypt's attempts to implement sound macroeconomic policies would lower the risks faced by investors and increase private investment flows to Egypt.

The report added that cash flows from non-oil economic activities would rebound once political tensions subsided, but also cautioned that the strong gains in Egypt's tourism sector had not yet brought its income up to 2010 levels.

The World Bank anticipated that the approval of an IMF loan of US$4.8 billion dollars in 2013 would open the door to the flow of additional aid from other donors, whether bilateral or multilateral, which would largely enhance and improve Egypt's foreign exchange reserve in 2013.

The report said that the planned reduction of fuel subsidies and tax reforms would cause the financial situation to significantly improve and would provide resources to the private sector.

However, the report also added that a renewed flare up in political tensions could hinder private sector investment, and therefore economic growth, in the near term.

A delegation from the World Bank arrived at Cairo International Airport from Geneva early Wednesday morning to discuss with Egyptian officials the economic crisis and the loans that the government has requested, according to ONA news agency.

Edited translation from MENA