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 percent of GDP for the fiscal year 2017, higher than the IMF's forecast of 10 percent, because of lower growth forecasts and "potential fiscal slippage."

Egypt secured a $12 billion 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.