IMF expects Egypt's growth to 5.2 pct in FY 2018 due to gas production hike

CAIRO, May 2 (Xinhua) -- Egypt's economic growth rate is expected to reach 5.2 percent in the 2017-2018 fiscal year due to anticipated increase of gas production, the International Monetary Fund (IMF) stated in an annual report released Wednesday.

"Growth is projected to rise to 5.2 percent in FY 2018, compared to 4.2 percent in the previous one, and accelerate further to 5.5 percent in FY 2019, aided by an increase in gas production," said the report.

In its May 2018 report entitled "The Middle East, North Africa, Afghanistan, and Pakistan Regional Economic Outlook," IMF said that Egypt marked in late January the early production of Zohr gas field, the largest in the Mediterranean Sea.

Egypt's fiscal year starts in early July and ends in late June.

Egypt has been suffering economic slowdown over the past few years due to political turmoil and relevant security challenges.

The country has started a strict three-year economic reform program since late 2016, including austerity measures, energy subsidy cuts and tax increases, in addition to local currency floatation to contain dollar shortage.

Despite causing price hikes and high inflation rates, the liberalization of the Egyptian pound's exchange rate encouraged the IMF to support Egypt's economic reform plan by a 12-billion-dollar loan, half of which has already been delivered to the North African country.

"The outlook for Egypt has improved relative to the October 2017 forecast. In the context of its IMF-supported program, improving confidence is boosting private consumption and investment, adding to the increase in exports and tourism," said the IMF report. Enditem