EBRD forecasted in a report Wednesday that Egypt’s growth will rebound to 5.2 percent in 2021.
Egypt’s budget for fiscal year 2020/2021 will be affected by COVID-19 pandemic especially with regard to revenues and growth rates, as well as an increase in the item of expenses.
This came during the minister’s meeting with Minister of International Cooperation Rania Al-Mashat and President of the Islamic Development Bank Bandar Hajjar, via video conference.
During 2021, Egypt would record real gross domestic product (GDP) of 2.8 percent, according to the report.
Meanwhile, Ahmed Kamali, the minister's adviser, said the growth rate was targeted to be 6 percent before the crisis, but now it is expected to drop to 4.2 percent.
Egypt Today reviews the most important pieces of information included in the plan.
The growth rate slowed down during the third and fourth quarter to 5.2 percent and 4 percent, respectively.
Investment spending contributed by 40 percent to the GDP growth, adding that net change in exports represents 30 percent of GDP and 20 percent came from consumer expenditures.
Egypt's high rate of economic growth during the second quarter and first half of the 2019-2020 increased to 5.6 percent compared to the same period in previous years.
The minister made these remarks during a meeting with the leaderships of the ministry to outline the plan for the fiscal year 2020-2021.
Egypt’s growth rate is expected to reach 5.8 percent and 5.9 percent in 2020 and 2021, respectively, up from 5.6 percent in fiscal year 2018/2019, Deutsche Bank expected.
Mai’t added in a press conference that Egypt achieved a primary surplus of LE 30 billion (0.5 percent) during the first half of 2019/2020.
The government aims to reduce the overall deficit rate to 6.2 percent, with the public debt to GDP ratio falling to 80 percent by completing fiscal controls.
Analysts have hailed Egypt for tough economic reforms tied to a three-year, $12 billion loan programme with the IMF agreed in late 2016, which has been disbursed in full.
Unemployment reached 13.2 and the growth rate in 2013/2014 was at 2.9 percent, so the rate surpasses that of emerging and developing markets.
Madbouli stated in the Cabinet weekly meeting that the growth rate during the last fiscal year recorded 5.6 percent.
Ma’it said in a meeting with Sisi that the budget deficit is expected to decrease to reach 8.4 percent of GDP.
Madbouli stated at the Arab Economic Forum held in Beirut that Egypt started reaping the fruit of the reforms and efforts exerted during the recent period.
Egypt Today reviews the most significant figures in the IMF’s report.
The World Bank expected Egypt to achieve a growth rate of 5.5 percent during 2019, marking the second highest growth rate in the ME and N. Africa region behind Djibouti.