US credit agency Moody’s expects Egypt’s economy to grow by at least 4 per cent in 2017/18, according to its annual Levant and North Africa Sovereign Outlook report.

The report says its forecast for the North African country is supported largely by private consumption and that “Egypt retains the region’s highest economic strength assessment, which reflects not only its scale but also its growth outlook compared to peers.”

Moody’s also says that Egypt’s debt levels and gross financing needs sit at approximately 55.6 per cent of GDP.

The Egyptian economy was given a major boost in the final quarter of 2016 when it finalised a $12bn loan with the IMF Cairo also managed to secure up to $6bn of bilateral financing from GCC countries and China.

The authorities have since applied a number of needed reforms in hope of increasing government revenues and driving economic growth.

The most notable reform was the flotation of the Egyptian pound in November last year, which saw the currency devalue by almost 60 per cent overnight. Other reforms include a curbing of fuel and food subsidies, the introduction of a value added tax (VAT) and plans to privately list some state-owned companies.

Cairo will be hoping for increased private sector participation in 2017. This was supported by the International Finance Corporation (IFC), which said it will look to support Egypt’s private sector in the coming years. In December 2016, the IFC invested $20m in Egyptian firm Hassan Allam Holding (HAH).