(MENAFN) Egypt's economy is expected to grow by 3.5 percent this fiscal year that began in July, a sign that the country's economy is beginning to recover after four year of political turmoil that led the country's economic growth to decline to below 2 percent in 2010/11 after reaching 5.1 percent in 2009/2010, Gulf News reported.
Egypt, which received billions of dollars in aid from Gulf states in the last year, has also introduced reforms to the economy as it was seeking to balance between restoring growth, controlling inflation and curbing its budget deficit.
In July, Egypt slashed energy subsidies that have long weighed on state finances, causing price rises, as part of its plan to reach a target of growth of 4 to 5.8 percent over the next three years, though this target seems hard to reach since analyses seem to suggest that the growth would accelerate to just under 4 percent in the next fiscal year.
Meanwhile, Egypt's gross domestic product (GDP) grew 2.2 percent in 2013/14, increasing slightly from 2.1 percent in the previous year, while the country's inflation recorded an increase during the first half of the fiscal year, but falling global oil prices are expected to reduce pressure the inflation in Egypt and on its budget.
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