Recent economic forecasts of the Economist Intelligence Unit predict that Egypt’s inflation rate is will grow from the current 3.6 percent to 5.8 percent in 2002. This rate, however, is expected dip back down to four percent by 2005.
In addition, the Economist predicted that average commercial lending rates would drop somewhat from the current 13 percent to 12.3 percent in 2002, and to a steady12 percent thereafter through 2005.
Furthermore, the nation’s budget deficit is expected to improve from the current 5.3 percent of the GDP to 3.2 percent in 2005.
The country’s privatization program, it said, would continue to push forward, albeit at a slower pace, to offset the negative social impacts of such a program. Some time is expected to pass until Egypt’s working class sees notable improvements of daily economic life under the plan. –(Mena Report)
© 2001 Mena Report (www.menareport.com )