A February BMI Research report predicted that Egypt will stand out as the economic outperformer of 2018 and applauded the structural reforms that the country has implemented as part of its 2016 International Monetary Fund (IMF) agreement.
The report also acknowledged the new investment act, saying it will “further boost investor confidence, and drive fixed capital formation in the country,” as well as provide employment opportunities and further boost GDP growth.
However, despite applauding the economic reforms, the report also expressed concern over political instability, but concluded that hurdles will not overshadow economic growth.
BMI is not the first leading organization to praise the Egyptian economy. In late January the IMF announced that the growth rate of Egypt’s economy increased from 3.5 percent in the fiscal year 2015-2016 to 4.2 percent in fiscal year 2016-2017, and expected it to reach 4.8 percent in the fiscal year 2017-2018 and to reach 6 percent in the medium term future.
The IMF also praised Egypt’s commitment to economic reforms and said its economic reform program played a crucial role in stabilizing the economic situation, but warned of possible risks, including a deteriorating security situation.
An international report issued by PricewaterhouseCoopers, a multinational professional services network based in London, expected the Egyptian economy to rank 15th worldwide by 2050, out of a list of 32 countries, according to the gross domestic products expected through the purchasing power parity (PPP).
The Egyptian economy took a plunge following the 2011 revolution. Recent improvements in the economy have come at a great price due to deteriorating living standards because of a surge in prices.
In 2017, Egypt slashed part of its fuel subsidies, resulting in a 60 percent surge in fuel prices.