HC Securities and Investment assured that the reforms implemented by the Egyptian government are starting to bear fruit, but at the expense of a higher short-term debt burden. We expect a growth in GDP, which may lead to a gradual drop of the ratio of local debt to GDP,” Saada added. Moreover, the company believes private investment growth is key to more sustainable GDP growth, in line with the IMF report. She also said she expects interest rates to be reduced by a total of 800 basis points (bps) throughout fiscal year (FY) 2018/2019. We therefore expect an overall budget deficit-to-GDP of 10.1% in the current fiscal year, 8.4% in FY 2018/2019, and 7.1% in FY 2019/2020,” Saada added.

Source: Daily News Egypt May 07, 2018 18:00 UTC