- The newly launched Egypt Economic Monitor presents the World Bank’s assessment of Egypt’s latest economic developments and outlook including the country’s digital transformation.
- It noted that Macroeconomic stabilization and particularly the recently introduced energy sector reforms have helped to strengthen the economy while the international financing has contributed to build foreign reserves.
The newly launched Egypt Economic Monitor presents the World Bank’s assessment of Egypt’s latest economic developments and outlook including the country’s digital transformation.
The report gives credit for the resilience shown by Egypt’s macro economy throughout the COVID-19 pandemic. It noted that Macroeconomic stabilization and particularly the recently introduced energy sector reforms have helped to strengthen the economy while the international financing has contributed to build foreign reserves. Nonetheless, uncertainties persist like the rest of the world due the COVID-related challenges. The report underlined the critical importance of continuing structural reforms to unlock the potential of private sector activity and sustain the recovery, drive productivity growth, and generate jobs.
Assuming that the COVID situation will normalise, the report forecasts Egypt returning to its pre-pandemic growth levels, recording a growth rate of 5.5 percent in FY2021/22. Exports are expected to pick up while external financing requirements may go up until FY2023.With the tightening of global financial conditions the cost of foreign financing may go up.
The report has dedicated a Chapter to the Government’s efforts for Digital Transformation. Though Egypt has achieved a fairly advanced level of government digitalization, the report highlighted the need for reforms in areas like Simplification and streamlining of government processes and procedures, roll-out of “end-to-end” digital solutions, and strengthening the foundations of the Digital Economy.
