File: Egypt's Minister of Finance Amr El-Garhy speaks during an American Chamber of Commerce in Egypt luncheon in New York, U.S., October 16, 2017 (Reuters)
Egyptian Minister of Finance Amr El-Garhy said the International Monetary Fund (IMF) expects Egypt's economic growth rate to hit 5.2 percent in the current fiscal year, and up to 5.8 percent in the upcoming state budget.
In statements on the sidelines of the 2018 Annual Spring Meetings of the International Monetary Fund and World Bank Group, El-Garhy said that an annual skyrocketing inflation rate, which registered 35 percent in July 2017, has started to gradually decrease, reaching 13.1 percent in March 2018.
The minister also highlighted the decrease in the unemployment rate from 13.5 percent in December 2017 to 11.3 percent in March 2018. The unemployment rate is expected to drop to to 9.7 percent by the end of fiscal year 2018/2019.
El-Garhy also highlighted a visit by the IMF board in May for a third review of the country's latest economic developments, in preparation for Cairo to receive a third tranche of $2 billion, bringing the total disbursements to $ 6.08 billion.
On Tuesday, the IMF said in its latest World Economic Outlook that Egypt is expected to achieve an economic growth rate of 5.2 percent in 2018, compared to 5 percent in October of 2017.
The IMF attributed the rise in Egypt's economic growth rate to stronger momentum in domestic demand and the effect of structural reforms.
“Egypt is projected to register an economic growth rate of 5.5 in 2019,” the IMF added.
Egypt’s economy has been struggling since the 2011 uprising, but economic reforms tied to a $12-billion three-year IMF programme signed in late 2016 have led to positive indicators after years of turmoil.