Bloomberg: Egypt ME Fastest Growing Economy

Bloomberg said in a report on Wednesday that Egypt has transformed to be the Middle East’s fastest-growing economy after three years of comprehensive reforms.

Egypt's reform agenda was executed along with a $12 billion loan from the International Monetary Fund (IMF) in 2016.

Furthermore, Egyptian bonds have been issued with high yields, up to 20%, making the country extremely attractive for foreign investors.

However, Egypt is currently cutting interest rates for the second time after it managed to push inflation to four years low, leading to the stabilization of the currency against the US dollar.

The Central Agency for Public Mobilization and Statistics (CAPMAS) announced earlier that the inflation rate fell year on year in July to record 7.8 percent compared to the corresponding month last year, which recorded 13 percent.

Meantime, the Monetary Policy Committee (MPC) is expected to reduce the benchmark of the overnight deposit rate on Thursday by at least 100 basis points at 14.75 percent.

According to Bloomberg, the decision would help the central bank stimulate economic growth. "Egypt is to become the most profitable destination for investors in emerging markets, many of which have been hit by the escalating war between the United States and China," Bloomberg concluded.

It is worth mentioning that the US Federal Reserve's decision to cut interest rates for the first time in 10 years will support any Egyptian move to cut rates.