The economic outlook of Egypt for the rest of 2014 remains a challenge. Egypt continues to implement expansionary macroeconomic policies with the help of aid from the Gulf countries. The GDP contributions of agriculture, manufacturing and extractive industries remained around 15%, 16% and 17% respectively in both 2011/12 and 2012/13. the balance of payments recorded a surplus of USD 237 million by end-June 2013 and USD 3.5 billion by end-September 2013. FDI has started showing signs of recovery, rising by 7.1% to USD 1.25 billion over the July-September 2013 period (fiscal year 2013/14) compared to the same period the previous year.

The medium-term priorities should be achieving higher and more inclusive growth while rebuilding fiscal and external buffers. Streamlining regulations and improving access to financing could help unleash private investment. At the same time, addressing impediments in the electricity and transport sectors would help boost economic activity and provide more equal access to jobs and business opportunities for all segments of society.

Download the African Economic Outlook’s full country note in PDF

[http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/2014/PDF/CN_Long_EN/Egypte_ENG.pdf

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