Publication: Egypt Economic Update, Fall 2010
Date
2010
ISSN
Published
2010
Author(s)
World Bank
Abstract
Egypt's growth accelerated in the
second half of FY10. Real Gross Domestic Product (GDP)
growth in FY10 reached 5.8 percent, up from 4.4 percent in
FY09 and 4.8 percent in FY10, taking up overall GDP growth
to an average of 5.3 percent for the full FY10. Egypt's
macroeconomic outlook is stable. Assuming that domestic
demand holds up, and Egyptian exports continue their
observed recent trend, we expect that the Egyptian economy
grows in the range of 6.0 to 6.2 percent in FY11. This is
underpinned by strong commitment to maintain structural
reforms momentum, and a relatively stable global economy.
However, unemployment will remain a challenge as growth as
high as 6 percent will barely absorb the increasing number
of new entrants to the labor market. Unemployment will
continue to be an overriding concern and will gradually fall
to around 8.7 percent in FY11. Finally, inflationary
pressures are expected to rise, as global prices are likely
to filter to domestic consumer prices, domestic demand will
gain more solid ground, and gradual adjustment of energy
prices will be implemented. Interest rates are not thus
expected to rise, yet real interest rates will remain low or
negative. This outlook is consistent with that of standard
and poor's ratings services which affirmed in 2010.
Citation
“World Bank. 2010. Egypt Economic Update, Fall 2010. © Washington, DC. http://hdl.handle.net/10986/27775 License: CC BY 3.0 IGO.”