Cover of The Report: Egypt 2018

The Report: Egypt 2018

As Egypt enters 2018, a newly liberalised local currency and the recent implementation of a much-anticipated investment framework have left the country well positioned for continued economic expansion: the IMF expects GDP growth to reach 4.5% in 2018 and accelerate to around 6% over the medium term.

Egypt has enjoyed a period of political stability since the turbulence of 2011-13, implementing a wide-ranging programme of economic reform. The process started with a drive to rebalance the economy through a number of challenging initiatives, including the reduction of subsidies, the introduction of value-added tax and the liberation of the Egyptian pound. At the outset of 2018, these headline measures had been implemented, and the government’s focus has since shifted to the improvement of governance and the investment climate. This effort includes the promulgation of the Civil Service Reform Law, aimed at cutting the large public sector wage bill, and an array of legislation designed to remove investment barriers, such as the Industrial Licensing Law, the Investment Law and the Company Law.

 

OBG & Egypt