Egypt’s macroeconomic situation has improved significantly following a three-year $12 billion (Dh44bn) reform programme but there is still work to be done as the country needs to absorb 3.5 million new workers in the next five years, an International Monetary Fund report found. The government devalued its currency and cut subsidies at the end of 2016 to get the IMF loan agreement, followed by further spending cuts. “A loss of momentum on reform implementation due to complacency or opposition from vested interests would weaken the growth outlook,” the IMF report said. While strong growth in recent years has resulted in a steady decline in unemployment, “should real GDP growth slow towards the 2006-2015 average of 4 per cent, unemployment would likely return to double digits”. Earlier this month the government decreased fuel prices, following a series of hikes under the reform programme in recent years.

Source: The North Africa Journal October 12, 2019 12:56 UTC