Egypt expects 30% decrease in investments if COVID-19 continues

CAIRO – 3 May 2020: "If Coronavirus crisis continued until the middle of the next fiscal year 2020/2021, investments are expected to decrease by about 30 percent,” Minister of Planning Hala el-Saeed said Sunday.

Saeed added that the volume of private investments is expected to decrease, which will in return affect the volume of total investments, which is estimated at LE 740 billion during the next fiscal year, as a result of the coronavirus crisis.

She added that government investments are planned to increase 33 percent from LE 211 billion in 2019/2020 to LE 280.7 billion during the next fiscal year, and investments funded by treasury and loans increase from LE 140 billion to LE 225 billion, with an increase of 61 percent.

This came during the Minister of Planning's discussion of the basic features of the sustainable development plan for 2020/2021 before the Parliament's Plan and Budget Committee, during the discussion of the state's draft general budget.

Saeed reviewed the performance indicators of the Egyptian economy before exposure to the crisis facing the Corona virus, noting that the economic growth rate reached 5.6 percent, the unemployment rate fell to less than 8 percent, the average inflation rate decreased to about 5 percent, and the foreign exchange reserves recovered to cover more than 8.5 A month of imports.

She also noted the decrease in the non-oil trade balance deficit by 24 percent, the increase in net foreign direct investment by 19 percent, the remittances of workers increased by 13 percent, and other positive financial and monetary indicators that were the focus of a qualitative shift in the case of sustainable development in Egypt.