Hermes Financial Group, one of the leading investment banks in the Middle East and Africa, expected that the Egyptian economy will become stronger and will be based on solid grounds in 2020 thanks to the Egyptian economic reform program that succeeded in creating an appropriate business atmosphere.

In its annual report, a copy of which MENA obtained, Hermes said the Egyptian market is likely to lead emerging markets in the Middle East in 2020 with an expected 15 percent profit growth rate.

Exchange prices are expected to return to their previous rates before the liberalization of the Egyptian pound, it added.

It said restructuring energy prices in July helped the government to go ahead with doubling wages' minimum rates, boosting local products and increasing pensions.

Fiscal deficit is likely to decrease within the next two years due to decline of interest rates that will lower borrowing costs, it added.

Hermes group expected that the pound price will be more stable against the dollar and that the total deficit will hit 2.9 percent of GDP thanks to improvement in the tourism sector.

It expected that borrowing costs will decline by 650 points in 2020.

Companies planning to expand are expected to achieve more profits in 2020 prompted by the decrease of interest rates, it said.

Hermes expected a relative recovery of the cement sector and an increase in the profits of communications companies operating in Egypt that showed an excellent performance in 2019