Cairo — Mubasher: Economic growth in the southern and eastern Mediterranean region will continue to accelerate this year, as the region’s most countries enjoying best tourism season since 2010, the European Bank for Reconstruction and Development (EBRD) said in a report.
The EBRD’s latest Regional Economic Prospects report noted that the general upturn mirrored improved competitiveness on the back of currency depreciations in Egypt and Tunisia, combined with the implementation of a slew of economic reforms.
The London-based lender forecasts growth across the southern and eastern Mediterranean region as a whole of 4.4% in 2018, up from 3.8% in 2017.
In 2019, expansion is projected to come at 4.7%, helped by recovery in traditional drivers of growth, namely higher exports, the implementation of business environment reforms to attract foreign direct investment, stronger private consumption from refugees, and greater domestic and regional political certainty, according to the report.
The EBRD expected Egypt’s economic growth to register 5.5% in fiscal year 2018/2019, versus 5.3% a year earlier.
The bank ascribed its growth forecast in the North African nation to a continued boost in confidence, a recovery in tourism, an increase in foreign direct investment and improved competitiveness.
“Other positive factors are expected to include a strengthening of exports, the start of natural gas production from the Zohr field, the implementation of business environment reforms and prudent macroeconomic policies,” the report highlighted.
While social unrest and political instability in Jordan and Lebanon has driven the bank to revise down its growth forecasts in the two countries from earlier predictions in May.
