The European Bank for Reconstruction and Development (EBRD) expected an economic growth of 4.5% in the fiscal year (FY) 2017/2018, according to its latest Regional Economic Prospects report published Tuesday.
The report said that the economic growth was supported by recent reform measures, continued recovery in the tourism sector, and export rebounds in Egypt.
According to the report, Morocco is the only country in the EBRD’s southern and eastern Mediterranean (SEMED) region that is expected to see a slow-down in growth during 2018, as the base effect from the agricultural rebound in 2017 (after a very poor 2016) is removed.
Average growth across the EBRD regions is seen at 3.3% this year, compared to 1.9% in 2016, an increase of 0.9%.
The growth has accelerated in 27 of the EBRD’s economies this year, the first time that such a broad upturn has been seen since 2010. All economies in the region, except Azerbaijan and FYR Macedonia, saw positive growth in the first half of the year.
Several countries, notably Romania and Turkey, are enjoying growth rates comparable to the pre-crisis levels of the mid-2000s.
EBRD’s chief economist Sergei Guriev said, “The broad-based recovery is a very welcome development. It also creates a window of opportunity to carry out reforms that will ensure the sustainability of the stronger growth rates over the longer term.”
Despite the recent acceleration in economic output, the EBRD expects average growth to remain slightly below that of other comparable emerging markets.