Egypt Economic Monitor, July 2019 : From Floating to Thriving – Taking Egypt's Exports to New Levels
Confronted with pervasive macroeconomic imbalances and microeconomic distortions, the Government of Egypt (GOE) started in 2016 to move forward with important reforms to stabilize the economy and restore confidence. At that time, Egypt was facing d...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/260061563202299626/Egypt-Economic-Monitor-From-Floating-to-Thriving-Taking-Egypts-Exports-to-New-Levels http://hdl.handle.net/10986/32109 |
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okr-10986-321092021-05-25T09:26:24Z Egypt Economic Monitor, July 2019 : From Floating to Thriving – Taking Egypt's Exports to New Levels World Bank Group ECONOMIC GROWTH GROWTH DRIVERS LABOR MARKET EXPORTS FISCAL POLICY REFORM FISCAL TRENDS MONETARY POLICY DEBT SERVICE BURDEN RISKS OIL AND GAS ECONOMIC OUTLOOK NON-TARIFF BARRIERS EXPORT COMPETITIVENESS TRADE LOGISTICS CONNECTIVITY GRAVITY MODEL TRADE POLICY TRADE PERFORMANCE Confronted with pervasive macroeconomic imbalances and microeconomic distortions, the Government of Egypt (GOE) started in 2016 to move forward with important reforms to stabilize the economy and restore confidence. At that time, Egypt was facing daunting economic and structural challenges, unsustainable fiscal and external imbalance and a deterring business environment. The severe foreign currency crunch that peaked in late 2016 motivated the GOE to introduce transformative economic reforms to alleviate the longstanding structural constraints to inclusive growth and macroeconomic stability. The flagship reforms of the economic program were (i) the liberalization of the exchange rate to eliminate the large currency overvaluation and foreign exchange shortages; (ii) a fiscal consolidation program that introduced a ale-added tax (VAT) and a gradual reduction in energy subsidies and the wage bill, and (iii) major energy sector terms to address power outages by public and private investment in generation and establish Egypt's potential as an oil and gas producer by reducing pricing distortions and arrears. These reforms were complemented by efforts to improve the business climate and attract private investment, starting with legislative reforms and the introduction of new laws on industrial licensing, investment, and insolvency. Macroeconomic indicators have reacted positively to the stabilization reforms. Most notable, economic growth has accelerated, the parallel market for foreign currency exchange has been contained, external deficits have narrowed, and international reserves have replenished. Public finances are progressing on a more sustainable path, with a frim containment of spending on price subsidies and a narrowing fiscal deficit. The improvement in macroeconomic conditions have also reflected positively on investors; perceptions, with credit rating agencies upgrading their ratings and outlook for Egypt. 2019-07-17T17:15:14Z 2019-07-17T17:15:14Z 2019-07 Report http://documents.worldbank.org/curated/en/260061563202299626/Egypt-Economic-Monitor-From-Floating-to-Thriving-Taking-Egypts-Exports-to-New-Levels http://hdl.handle.net/10986/32109 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work Middle East and North Africa Egypt, Arab Republic of |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ECONOMIC GROWTH GROWTH DRIVERS LABOR MARKET EXPORTS FISCAL POLICY REFORM FISCAL TRENDS MONETARY POLICY DEBT SERVICE BURDEN RISKS OIL AND GAS ECONOMIC OUTLOOK NON-TARIFF BARRIERS EXPORT COMPETITIVENESS TRADE LOGISTICS CONNECTIVITY GRAVITY MODEL TRADE POLICY TRADE PERFORMANCE |
| spellingShingle |
ECONOMIC GROWTH GROWTH DRIVERS LABOR MARKET EXPORTS FISCAL POLICY REFORM FISCAL TRENDS MONETARY POLICY DEBT SERVICE BURDEN RISKS OIL AND GAS ECONOMIC OUTLOOK NON-TARIFF BARRIERS EXPORT COMPETITIVENESS TRADE LOGISTICS CONNECTIVITY GRAVITY MODEL TRADE POLICY TRADE PERFORMANCE World Bank Group Egypt Economic Monitor, July 2019 : From Floating to Thriving – Taking Egypt's Exports to New Levels |
| geographic_facet |
Middle East and North Africa Egypt, Arab Republic of |
| description |
Confronted with pervasive macroeconomic
imbalances and microeconomic distortions, the Government of
Egypt (GOE) started in 2016 to move forward with important
reforms to stabilize the economy and restore confidence. At
that time, Egypt was facing daunting economic and structural
challenges, unsustainable fiscal and external imbalance and
a deterring business environment. The severe foreign
currency crunch that peaked in late 2016 motivated the GOE
to introduce transformative economic reforms to alleviate
the longstanding structural constraints to inclusive growth
and macroeconomic stability. The flagship reforms of the
economic program were (i) the liberalization of the exchange
rate to eliminate the large currency overvaluation and
foreign exchange shortages; (ii) a fiscal consolidation
program that introduced a ale-added tax (VAT) and a gradual
reduction in energy subsidies and the wage bill, and (iii)
major energy sector terms to address power outages by public
and private investment in generation and establish
Egypt's potential as an oil and gas producer by
reducing pricing distortions and arrears. These reforms were
complemented by efforts to improve the business climate and
attract private investment, starting with legislative
reforms and the introduction of new laws on industrial
licensing, investment, and insolvency. Macroeconomic
indicators have reacted positively to the stabilization
reforms. Most notable, economic growth has accelerated, the
parallel market for foreign currency exchange has been
contained, external deficits have narrowed, and
international reserves have replenished. Public finances are
progressing on a more sustainable path, with a frim
containment of spending on price subsidies and a narrowing
fiscal deficit. The improvement in macroeconomic conditions
have also reflected positively on investors; perceptions,
with credit rating agencies upgrading their ratings and
outlook for Egypt. |
| format |
Report |
| author |
World Bank Group |
| author_facet |
World Bank Group |
| author_sort |
World Bank Group |
| title |
Egypt Economic Monitor, July 2019 : From Floating to Thriving – Taking Egypt's Exports to New Levels |
| title_short |
Egypt Economic Monitor, July 2019 : From Floating to Thriving – Taking Egypt's Exports to New Levels |
| title_full |
Egypt Economic Monitor, July 2019 : From Floating to Thriving – Taking Egypt's Exports to New Levels |
| title_fullStr |
Egypt Economic Monitor, July 2019 : From Floating to Thriving – Taking Egypt's Exports to New Levels |
| title_full_unstemmed |
Egypt Economic Monitor, July 2019 : From Floating to Thriving – Taking Egypt's Exports to New Levels |
| title_sort |
egypt economic monitor, july 2019 : from floating to thriving – taking egypt's exports to new levels |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/260061563202299626/Egypt-Economic-Monitor-From-Floating-to-Thriving-Taking-Egypts-Exports-to-New-Levels http://hdl.handle.net/10986/32109 |
| _version_ |
1764475803694792704 |