Harvard: Egypt’s Economy to Grow 6.8% YoY Till 2027

Egypt’s Prime Minister Moustafa Madbouli reviewed a report issued by Harvard-affiliated Center for International Development CID.

The report said that Egypt’s economy is forecast to grow at a 6.8% clip per year over the next 10 years, placing it among the top of the list of the fastest-growing economies until 2027.

The report added that the annual economic growth rate is expected to hit 6% in Myanmar, Uganda, China, and Vietnam.

Harvard projections are based on a measure of ‘economic complexity,’ which accounts for the perse and sophisticated production involved in each country’s exports.

The Harvard report pointed out that Egypt, Uganda, China, Vietnam and Tanzania are the fastest-growing countries, as well as each country has a more sophisticated range of specialized know how than expected or its income that will drive persification and growth.

Egypt ranked 68th on the Economic Complexity Index.

Egypt has moved up two places in the Economic Complexity Index due to export persification increasing complexity of the country’s economy.

Harvard projects that Egypt will continue along the same trajectory in the years to come as it further persifies production.

"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 challenges.

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 US dollar.