In terms of headline inflation, it is expected to decline as of November 2017 as the positive base effect kicks in. The government announced earlier that subsidies on petroleum products would need to be reduced from an expected EGP 145bn to EGP 110bn in the FY 2018 state budget and electricity from EGP 80bn to EGP 30bn. Energy subsidies as a portion of total government expenditures will also decline to around 9% in FY 2018, from 20% in FY 2012. This could reduce the anticipated increase in tax revenues in the FY 2018 state budget. In terms of Arqaam’s general projections for 2018, Arqaam said that it maintains its existing economic growth projections.

Source: Daily News Egypt July 12, 2017 06:00 UTC