By Mahmoud Fouly CAIRO Egypt (Xinhua)
-- A recent Harvard report has ranked
Egypt as the world’s third fastest growing economy in the coming
decade after India and Uganda.
The Global Growth
Projections report, which was released by the Center for
International Development (CID) at Harvard University on
Thursday, expects Egypt’s annual economic growth to reach 6.63
percent by 2026.
In Africa, Egypt is
ranked second after Uganda. The annual economic growth is
forecast to hit 7.46 percent, according to the report.
projections are based on Economic Complexity, a single measure
of each country’s economy which captures the diversity and
sophistication of the productive capabilities embedded in a
country’s exports,” said the report.
report is even below Egypt’s desired growth that is taking good
steps according to all indicators,” Rashad Abdo, an economics
professor at Cairo University and head of the Egyptian Forum for
Economic and Strategic Studies, told Xinhua.
6.63-percent annual economic growth is easily manageable in
normal circumstances considering Egypt’s improving security
conditions and recovering tourism sector, he explained.
ongoing economic reform in Egypt has led to the improvement of
the country’s economy with expectations of higher growth by
world financial institutions including the International
Monetary Fund (IMF).
“The economic reform
program surely has its effect on the growth rate, in addition to
the pro-investment legislations such as the new investment law
that provides massive incentives to foreign investors in Egypt,”
In an annual report
released on Wednesday, the IMF expected Egypt’s economic growth
to reach 5.2 percent in the 2017-18 fiscal year compared to 4.2
percent last year, and further accelerate to hit 5.5 percent in
the 2018-19 fiscal year.
“The outlook for
Egypt has improved relative to the October 2017 forecast. In the
context of its IMF-supported program, improving confidence is
boosting private consumption and investment, adding to the
increase in exports and tourism,” said the IMF May 2018 report,
entitled “The Middle East, North Africa, Afghanistan, and
Pakistan Regional Economic Outlook.”
Over the past few
years, Egypt has been struggling to overcome an economic
recession resulting from political turmoil and relevant security
In late 2016, the
country started a strict three-year economic reform program
including austerity measures, energy subsidy cuts and tax
increases, in addition to local currency floatation to contain
the shortage of U.S. dollar.
Despite the negative
consequences of price hikes and higher inflation, the
liberalization of the Egyptian pound’s exchange rate encouraged
the IMF to support Egypt’s economic reform by a
12-billion-dollar loan, half of which has been delivered to the
North African country.
The reform program
has positively reflected on the general performance of the
Egyptian economy and led to more confidence in the country’s
“The security and
stability conditions are getting better, luring more tourists
and foreign investors. In addition, the local currency
devaluation also attracts foreign investors,” Abdo said.
professor pointed out that the tourism sector, which is a main
source of national income and hard currency, is improving as the
Russian direct flights to Egypt started to return after more
than two years of suspension.
A delegation from
the IMF arrived in Cairo late Friday to review Egypt’s economic
reform progress, ahead of delivering the fourth installment of
the 12-billion-dollar loan, which is worth 2 billion dollars.
Earlier in the day,
Egyptian Finance Minister Amr al-Garhy said the country’s
economy is maintaining the momentum of steady growth, noting
that it aims to achieve the sustainable growth rates of between
6 and 7 percent.