...Egypt continues to progress its economic and structural reforms and strengthened policy framewor k. Results are evident in accelerating GDP growth, risi ng investment, and falling unemployment. The current account will probably move into deficit next year but this will be more than covered by growing FDI and reserves are expected to continue rising. Egypt attained net external creditor status in ## ##, enhancing an already strong external position with high liquidity and low debt service and a comfortable external debt structure. Inflation has risen to double digits over the past year. However, this was mainly due to supply shocks, as well as an important reduction in energy subsidies, rather than overheating, although current growth rates will only be sustained if investment continues to rise. Inflation targeting is still a year or more from implementation, but inflation is now falling. Despite improvements, public finances remain the key weakness in Egypt s credit profile....
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