Moody's sees Egypt's economy growing but reforms slipping

Cairo - Ratings agency Moody's says the economic picture for Egypt is improving, but that "mounting public discontent" will likely lead it to slow reforms undertaken to secure a bailout from the international Monetary Fund.

In a report released on Wednesday, Moody's forecasts the Arab world's most populous country will reduce its fiscal deficit to 11% of GDP for the fiscal year 2017, higher than the IMF's forecast of 10%, because of lower growth forecasts and "potential fiscal slippage."

Egypt secured a $12bn loan from the IMF last November, for which it imposed a set of tough economic measures.

The measures included reduced subsidies and the devaluation and subsequent flotation of its local currency in order to qualify for the loan.