WB forecasts Egypt's Economic Growth to Reach 6% in 2021

By: Yassmine ElSayed

CAIRO, Jan. 9 (SEE) - The World Bank forecasted Egypt’s growth to reach 6 percent by 2021, driven by private consumption, continued recovery in tourism, and the new operations of gas fields.

In a report titled “Darkening Skies" on global economy prospects, the Bank predicted Egypt's growth to reach 5,7 percent by the end of 2019.

It also predicted Egypt's public investment to grow along with the expected private investments as the business environment reforms continuing to be effectively implemented.

In the report also, the UAE's gross domestic product (GDP) will maintain its strong growth in 2019 and the next two years, driven by higher investment and regulatory reforms, despite headwinds in the global economic growth, and Saudi's economy will grow by 2,2 percent by the of 2021.

"Global growth is expected to slow to 2.9 percent in 2019 compared with 3 percent in 2018, trade tensions remain elevated, and financing conditions are tightening.

Amid recent episodes of financial stress, growth in emerging market and developing economies has lost momentum and is projected to stall at 4.2 percent this year, with a weaker-than-expected rebound in commodity exporters accompanied by deceleration in commodity importers.

"Downside risks have become more acute. Financial markets pressures and trade tensions could escalate, denting global activity," the report said.

By 2021 growth in China is expected to be 6 percent, which is still pretty strong, but it is a marked change of gear for an economy that expanded by an average of 10% annually between 1980 and 2010.

The bank left its forecast for the U.S. economy unchanged at 2.5 percent this year, down from 2.9 percent in 2018.