Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

WB Report Praises Outcomes of Economic Reforms


Wed 17 Jul 2019 | 11:32 AM
Ahmed Yasser

World Bank announced on Tuesday, a report titled “The Egyptian Economy Observatory” in a press conference held at the headquarters of the Investment and International Cooperation ministry.

This report looks at an important aspect of the economy’s competitiveness: export performance and integration into global markets.

In addition, the most important reforms are enhancement of the investment climate, attraction of private investments and legislative reforms embodied in new investment laws pertinent to restructuring and bankruptcy.

 

 

WB Report

The analysis identifies three main reforms of the economic program were the liberalization of the exchange rate to eliminate the large currency, overvaluation and foreign exchange shortages, fiscal consolidation program that introduced a ale-added tax (VAT) and a gradual reduction in energy subsidies and the wage bill.

These reforms were complemented by efforts to improve the business climate and attract private investment, starting with legislative reforms and the introduction of new laws on industrial licensing, investment and insolvency.

On other hand, the GDP growth will continue rising until it records 6 %in 2021. It also estimates that private investments will continue to increase as a result of the prospective reforms relevant to the investment climate. It estimates the same for public investments, particularly in the infrastructure sector.

Noteworthy, economic growth has accelerated, the parallel market for foreign currency exchange has been contained, external deficits have narrowed and international reserves have replenished as well as the credit rating agencies upgrading their ratings and outlook for Egypt.