(3 minutes read)
· The National Bank of Kuwait (NBK) has stated that the worst
repercussions of the novel coronavirus (COVID-19) pandemic have ended
and the country was on the right growth path
· The preliminary figures revealed that Egypt’s real GDP grew by 3.6% in fiscal year (FY) 201920, compared to 5.6% in the previous
year.
The National Bank of Kuwait (NBK) has stated that the worst repercussions of the novel coronavirus (COVID-19) pandemic have ended and the country was on the right growth path. The preliminary figures revealed that Egypt’s real GDP grew by 3.6% in fiscal year (FY) 201920, compared to 5.6% in the previous year.
The bank sources said that the closures due to pandemic led to a decline of 1.7% in the second quarter (Q2) of 2020, compared to 5% in Q1 of 2020. That period also witnessed an increase in its unemployment rate, to 9.6% in Q2 of 2020, compared to 7.7% in Q1.
According to the Bank, the country’s main economic indicators are still showing a gradual recovery. The key PMI had seen an upward trend rising to 51.4 in October, approaching a six-year high, compared to 50.4 in September. This came on the back of Egypt’s key PMI averaging 49.8 and 38.3 in Q2 and Q3 of 2020, respectively. Conditions are expected to improve in Q4 of 2020.
According to NBK, another indicator is the decrease in the unemployment rate to 7.3% in Q3 of 2020, thanks to gradual easing of precautionary measures from July. The Egyptian economy will grow to about 2.5% in FY 2020/21, before recovering strongly to about 5% in the medium term. The bank highlighted the significant decline in inflation rates, adding that since the beginning of the implementation of macroeconomic reforms in late 2016, urban inflation has taken a declining trend.
