- IMF expects the Egyptian economy to record 2.5%, in FY 2020/21, though slightly lower than its projection in October’s world economic outlook (WEO) of 2.8%.
- By 2025/26, IMF expects Egypt to record 5.7% and 5.8% growth, respectively, compared to 3.6% in FY 2019/20.
IMF’s latest world economic report for April projects that the Egyptian economy is on its path of recovery in the next fiscal year (FY) majorly supported by the rollout of COVID 19 vaccines.
According to Taline Koranchelian, Deputy Director at the IMF’s Middle East and Central Asia Department the rebound of Egypt’s economy is also pushed by the government’s public investment. IMF expects the Egyptian economy to record 2.5%, in FY 2020/21, though slightly lower than its projection in October’s world economic outlook (WEO) of 2.8%. By 2025/26, IMF expects Egypt to record 5.7% and 5.8% growth, respectively, compared to 3.6% in FY 2019/20.
Justifying IMF’s growth projection for Egypt in FY 2020/21, Koranchelian said that Egypt has done well in containing the economic fallout of the COVID-19 pandemic. He added that Egypt was one of the few countries to have dodged a negative contraction in its GDP last year. He pointed out that though tourism, a key player in its economy, has started recovering, the receipts were lower than before which is also an important factor in growth. She urged the need to maintain and to support the recovery and to accelerate the structural reform agenda. She also underlined the importance of improving governance and the business environment, and removal of trade barriers and advocated equal opportunities for the state-owned as well as private enterprises.
Meanwhile, Egypt’s Minister of Planning and Economic Development Hala El-Said announced the second phase of Egypt’s reform programme. The Programme covers structural reforms in the formal sector to encourage inclusive growth; creating new job opportunities; diversifying and developing production patterns; and improving Egypt’s business climate.
Last June, Egypt had agreed with the IMF on a 12-month Stand-By Arrangement(SBA) facility worth $5.2bn..
