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Egypt’s economy to grow by 4 per cent in 2015: Report

However, many challenges remain and massive financial deficit remains prime concern despite reforms

Egypt’s economy is projected to grow by more than four per cent in the current year for the first time since 2010, a new report forecasts.

The robust growth is mainly driven by a more stable political environment, financial aid from Gulf countries and a growing business climate, the report by the National Bank of Kuwait (NBK) indicates.

The report says the Egyptian government sector continues to push the pace of growth forward through a number of major public initiatives and ventures.

The report goes on to highlight a number of challenges facing the Egyptian economy, such as the massive financial deficit, which remains a prime woe despite reforms.

Strong financial assistance by GCC countries have helped prop up public finances, but those are unlikely to be sustained in the medium term, the Kuwait News Agency reports.

However, the country’s markets remain confident that authorities are implementing the required reform steps, the report notes, referring to Egypt’s recent USD bond issuance as a good example of reforms.