Egypt’s economy bouncing back after recent upheavals but IMF urges caution

The Egyptian economy has begun to show signs of recovery from the turmoil that followed the 2011 ousting of then president Hosni Mubarak during the Arab Spring uprising.

The International Monetary Fund has predicted the country’s growth rate could reach 3.8 per cent during the fiscal year 2014-2015, while finance minister Kadry Dimian says growth in the fourth quarter of 2013-2014 is expected to come in at 3.5 per cent. The Egyptian fiscal year runs to June 30th.

Over the past six months, the government, under Prime Minister Ibrahim Mahlab, has reduced fuel subsidies, raised corporate and personal income tax, developed vouchers for subsidised food items, and launched a labour-intensive project to increase traffic through the Suez canal.