The prosperous year 2017 is considered the initial year to reap the fruit of the gallant economic reform program introduced by the Egyptian government in July 2014 of many reforms was implemented later in September 2016. This reform program focused on liberating the economy; hence, it progressed towards flexible monetary policies on top of which came for the first time ever in the Egyptian economy, the full floating of the currency that was implemented in November 2016. Additionally, introducing financial policies that aimed at restructuring the economic support system and the introducing the VAT in September 2016. These reforms target real developments in the structure of the state budget as well as focus on reducing the budget deficit levels; in addition to legislative reforms witnessed by the investment structure.
The economy witnessed signs of recovery in a number of important indicators, with economic growth around 5.2% in the first quarter of 2017/2018 with the government forecasting a target of 5.5% at the end of the year instead of 4.6% with the IMF confirming its positive outlook for Egypt's economic growth to 5.5%.
On the other hand, cash reserves have improved markedly to record 36.7 billion dollars in November 2017 compared to 19 billion in October 2016, and inflation fell to about 26% in November 2017 down from 35% in July 2017 with expectations of continued decline during the coming period, This is in addition to the noticeable improvement in the status of the budget sector where the World Bank expects the budget deficit for the current fiscal year to fall to 8.8% against 10.8% during the last fiscal year.
The enactment of several legislations aimed at improving the business environment, including the issuance of the Investment Law, its Executive Regulations, the Law on Transferable Safeguards, the Industrial Licensing Law and other laws aimed at the business environment and supporting private sector activity, have had an impact on increasing economic growth rates.
Arab Republic of Egypt
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