Egypt expects its economy to grow between 4.2%- 4.5% in the second half of the current fiscal year, Investment Minister Ashraf Salman told state-run news agency MENA.
The forecast is the most recent of bullish readings indicating that the country’s beat economy is convalescing, as the minister’s predictions show an improvement to the 3.1% growth recorded in the year-earlier period. Egypt’s fiscal year ends on 30 June.
The government has taken a series of measures to revive the economy, which has been growing at an average of around 2% over the past three years. Measures being taken are aimed at luring back foreign investments that fled Egypt in years of turmoil, and reworking imbalances in the state budget.
This included tax reforms, the cutting of subsidies that burdened state budgets, as well as a glistening three-day conference in March in which the government promoted and announced multi-billion-dollars worth of investments sealed with foreign investors.
According to a statement from the Investment Ministry on Monday, Salman said a committee was formed with the task of informing the prime minister of weekly progresses made in the myriad of agreements reached during that conference.
The government’s strategy has been reaping fruit. On 7 April, international credit rating agency, Moody’s, upgraded Egypt’s ranking to B3 from Ca1, with a stable outlook, citing improved microeconomic performance, continuing fiscal and economic reforms, as well as ongoing support from Gulf countries.
Saudi Arabia, Kuwait and the United Arab Emirates have put their weights behind Egypt’s post-30 June, military-backed government, funnelling more than $30bn in the Egyptian economy since then. The last of that was pledged $12.5bn announced in March’s Economic Summit.
Moody’s also expected economic growth to reach 4.5% in the current fiscal year, to gradually rise to 5% and 6% over the next four years.