Hermes predicts 2020 great year for Egyptian economy

The leading investment bank in the Middle East, Hermes Group released an annual report on the outlook for Egyptian economy in 2020, reported MENA.

The outlook predicts a solid growth for the Egyptian economy in 2020. Egypt is expected to reap the gains of the years of economic reform since the devaluation of the Egyptian pound.

Profit growth rate is expected to rise by 15% making Egypt the leading emerging market in MENA in growth in 2020.

Hermes also predicted a drop in fiscal deficit over the nest 2 years as interest rates will decline thus borrowing costs will further drop at least by 650 points. It is also expected that the pound will stablize against the dollar, improvements and stability are already visible in tourism and cement sectors who will continue to grow and support the GDP.

The communications sector is also expected to increase profits and further stablize, especially after their remarkable performance in 2019.

The report also stated that it was the reforms on energy prices that played a major role in the growth as it led to the ability of increasing minimum wages and pensions as well as supporting local produce.