IMF lowers 2016-17 growth forecast for Egypt to 3.5 percent


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CAIRO, April 18 (Reuters) - Egypt's economy will grow by 3.5
percent during the 2016-17 financial year, the International
Monetary Fund said on Tuesday, lowering the 4 percent forecast
it made in a report last year.
    The IMF last November agreed to provide Egypt with a
three-year, $12 billion loan as part of an ambitious economic
reform programme that includes levying new taxes and cutting
energy subsidies.
    "In Egypt, comprehensive reforms are expected to deliver
sizable growth dividends, lifting growth from 3.5 percent in
2017 to 4.5 percent in 2018," the IMF said in its World Economic
Outlook on Tuesday, in which it raised its overall global growth
forecast. [nL1N1HQ0XS]
    The 2017 figure, which refers to the 2016-17 fiscal year
ending in June, is lower than what the international lender had
expected in a report around the time Egypt accepted the loan. It
is also a drop from the 4.3 percent the North African country
recorded in 2015-16.
    The report did not provide a reason for the downward
revision.
    Egypt has been hit by soaring inflation since it floated its
currency in November, allowing it to roughly halve in value.
Urban consumer inflation hit 30.9 percent year-on-year in March,
its highest in decades, though month-on-month inflation has
slowed. [nL8N1HI29X]

 (Reporting by Eric Knecht; editing by Andrew Roche)
 ((eric.knecht@thomsonreuters.com; +20 2 2394 8102; Reuters
Messaging: eric.knecht.thomsonreuters.com@reuters.net))

Keywords: EGYPT ECONOMY/IMF



This article appears in: Politics , Stocks , World Markets , Economy


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