CI Capital predicts a 17% decline in Egypt’s inflation by end of 2017

CAIRO – 15 May 2017:The Egyptian inflation rate is predicted to decline to 13% by the end of 2017, compared to its current rate of 30%, according to CI Capital Holding, affiliated to the Commercial International Bank.

CI Capital Senior Economist Hany Farahat said in a press statement that the recent hike in commodities prices would ease by December. He added that the foreign exchange would also see significant stability against the pound, ranging from 14-16 EGP per dollar, compared to 18 EGP this month.

Farahat predicted an increase in investments in Egypt in the coming period, reaching $10 billion by the end of this year. CI Capital economists said that Egypt’s growth rate would witness a 5% increase in the next year.

Egypt has been suffering economic recession over the past few years as a result of political turmoil and certain security issues that have affected the country's tourism industry and foreign investment. The government under President Abdel Fatah al-Sisi has adopted a strict three-year economic reform program including austerity measures and energy subsidy cuts.