The FocusEconomics Consensus Forecast expects total investments in Egypt to grow 8.9% in fiscal year (FY) 2017/2018, up 3.2% from last month’s estimates.
The FocusEconomics report said that investments are expected to grow to 10.2% in FY 2019.
The report noted that the recent investment and industrial licensing laws are likely to boost investment; consumer spending should recover as inflation recedes, and exports and tourism should also strengthen.
The report noted that total investments in FY 2015 were 8.6%, while, they grew in FY 2016 to reach 11.2%, which was the highest since FY 2013. Meanwhile, investments decreased in FY 2017 to 10%.
However, despite the investment climate improvement in Egypt, FocusEconomics Consensus Forecast projects that total investments will decline to reach 8.9% in FY 2018.
Then, they will grow again in FY 2019 to reach 10.2%, according to FocusEconomics.
Foreign Direct Investments (FDIs) in Egypt registered $4.3bn in FY 2013, and reached $4.6bn in FY 2014. FDIs recorded $6.9bn in 2016, and increased to reach $ 8.1bn in FY 2017.
However, the high public debt ratio could become a concern if the pace of reform implementation slows.
FocusEconomics analysts expect GDP to expand 4.2% in FY 2018, up 1% from last month’s forecast, and to reach 4.8% in FY 2019.