BMI View: Egypt's consumer outlook remains tepid over 2017 and 2018, weighed down by weakening economic conditions. Rising inflationary pressures, coupled with unfavourable labour market conditions, will dampen consumer purchasing power. Gradual improvements in consumer spending will be seen in the second half of our five-year forecast period, on the back of easing inflationary pressures and a healthier economic outlook.
Growth in real private consumption will come under immense pressure over 2017, forecast to drop to 0.5% from 4.6% in 2016. This is on the back of unfavourable consumer spending conditions, with inflation forecast to average 28.7% in 2017, an upward revision from 23.6% previously, after inflation reached a high of 33.0% in July 2017.