Key View

• At Fitch Solutions, we forecast Egypt’s fiscal deficit to narrow to 6.8% of GDP in FY2019/20, from 8.2% in FY2018/19.
• Savings will account for the bulk of the gains, with the government on course to embark on another round of subsidy cuts in mid-2019.
• Strong revenue growth, driven by rapid economic growth, improved tax collection and

Key View

• At Fitch Solutions, we forecast Egypt’s real GDP growth to accelerate moderately from 5.3% in FY2018/19 to 5.4% in FY2019/20.
• Investment will remain a strong driver of headline growth, primarily as a result of rising government spending on infrastructure and rapid development of the country’s hydrocarbon sector.
• Growth will also

Key Views:

• Strong international participation in the latest exploration licensing round results, announced in February 2019, is indicative of the strong outlook for the country's oil and gas sector.
• Low cost breakevens, significant existing infrastructure, technical knowledge and an improving regulatory environment with the Egyptian government

Key View:

• We at Fitch Solutions expect the Central Bank of Egypt (CBE) to keep interest rates on hold over the next few months as the effects of subsidy cuts feed through to higher inflation.
• We see scope for the bank to resume its rate-cutting cycle in H219 as price pressures cool. That said, the pace of easing will likely be gradual amid more

Key View

• Egypt’s pharmaceutical and healthcare markets are among the most attractive in the Middle East and North Africa (MENA) region.
• After a succession of economic and regulatory reform, there has been an uptick in interest and investment from multinational drugmakers and healthcare providers in Egypt’s healthcare and pharmaceutical markets

Key View:

• We are sceptical that Egypt’s plans for a new electric railway linking Cairo with the planned New Administrative Capital (NAC) will materialise over our long-term forecast period (to 2028). 
• Although the funding for the railway has reportedly been agreed with a USD1.2bn loan from Exim Bank of China, the project faces numerous

Key View:

• Egyptian President Abdel Fattah el-Sisi appears likely to be granted a constitutional amendment allowing him to run for additional terms beyond 2022.
• Domestic and external security conditions are conducive to Sisi extending his term in office.
• The performance of the economy will be the key determinant of Sisi’s political fortunes.
• D

Key View:

• We at Fitch Solutions expect Egypt’s fiscal deficit to narrow from an estimated 9.4% of GDP in FY2017/18 to 7.8% in FY2018/19 and 6.4% of GDP in FY2019/20.
• Tax reforms and robust real GDP growth will result in higher tax revenues, while government earnings from the gas sector will expand in line with rising production. Further energy

Key View:

• We expect the Central Bank of Egypt (CBE) to keep its deposit and lending rates on hold throughout the remainder of 2018 at 16.75% and 17.75% respectively.
• This represents a revision from our previous forecast of one 100 basis point (bps) cut to each rate on the back of higher-than-expected inflation and against a backdrop of volatile

Key View:

• There is increasing political will in Egypt to develop the healthcare sector.
• Legislative changes and financial backing from the World Bank will boost the success of Egypt's healthcare reform project.
• Healthcare reforms pose upside risks for drugmaker opportunities.

In July 2018, the World Bank announced plans to invest EGP9.5bn