A current Harvard report has classified Egypt as one of the world’s fastest growing economy’s in the coming decade after Uganda and India on Thursday.
A report released by the Global Growth Projections, which was reported by the Center for International Development in Harvard University, have expressed hopeful predictions regarding Egypt’s annual growth rate to reach 6.63% by 2026.
“The growth projections are based on Economic Complexity, a single measure of each country’s economy which captures the diversity and sophistication of the productive capabilities embedded in a country’s exports,” said the report.
According to the report, Egypt is ranked after Uganda as fastest growing economy in the African content. The yearly economic growth is forecast to reach 7.46%.
In the past few years, Egypt has undergone significant economic recession as a result of facing several security challenges and political disorder. In 2016, a stern three-year economic reform program was introduced to the country which included energy subsidy cuts, tax increases, austerity measures and currency flotation.
The flotation of the Egyptian pound was meant to contain the shortage of the U.S dollar; however, as a consequence to the currency flotations, prices and inflation spiked.
In an annual report released on Wednesday, the IMF expected Egypt’s economic growth to reach 5.2 percent in the 2017-18 fiscal year compared to 4.2 percent last year, and further accelerate to hit 5.5 percent in the 2018-19 fiscal year.
Yet, regardless of the gloom-ridden response to the heightened inflation and economic difficulties, the loosening of restriction on the Egyptian pound’s exchange rate has encouraged the International Monetary Fund (IMF) to support Egypt’s economic reform by offering a 12-billion-dollar loan which has been a positive indication on the performance of the Egyptian economy and has led to more assurance in the country’s investment climate.
According to XinhuaNet, Egyptian Finance Minister Amr al-Garhy stated that Egypt, which is currently maintaining economic momentum, aims to achieve and maintain the sustainable growth rates of between 6 and 7 percent.