BMI View: Although 2017 will be a relatively trying time for Egyptian trade as the country is stillstruggling with the devaluation of the pound in the fourth quarter of 2016, the structural adjustments beingcarried out in Egypt as part of its International Monetary Fund programme are starting to bear fruit, andwe forecast an acceleration in growth in the current fiscal year, which is welcome news for the freightindustry. Early indicators suggest that a weak currency is restricting imports and boosting exports in thecountry. We also continue to believe that major investments in the road and rail sector coupled with strongChinese bilateral investments in the country will provide support for the various freight modes over themedium term.
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Private consumption in Egypt will continue to lag in the face of high inflation and subsidy removal,but increases in investment and net exports will help offset the impact of this trend on overall growth.The fact that private consumption is lagging is a cause for concern in the modes that deal primarily withessential goods, such as road, and higher-end goods, which air freight concerns itself with, as well asroad.
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