Additionally, the wholesale, retail trade, agriculture, and manufacturing sectors contributed to the increase in growth. July 9, 2020. The poverty rate, projected to remain elevated at 27% (using the international poverty line of US$ 3.20), could rise further. Saudi share of Gulf economy rose to almost 50% in 2020 Swiss probe Lebanon’s central bank chief over alleged $300m embezzlement Tawakkalna health status confirmation needed to fly from Saudi Arabia Yet, a closer look would have supported the view that the path ahead was risky. It is one of the few African countries expected to record a positive growth in 2020, at 3.6%, despite the adverse impact of the COVID–19 pandemic. Growth was driven by a macroeconomic stabilization program that was largely successful, generating a solid primary budget surplus, reducing the debt-to-GDP ratio, and replenishing reserves. (May 2020) The economy of Egypt used to be a highly centralized economy focused on import substitution under president Gamal Abdel Nasser (1954–1970). As part of Egypt’s two-step request for IMF financing to respond to COVID-19, $5.2 billion was approved under the 12-month Stand-by Arrangement (SBA). Maait noted that the state budget will achieve an initial GDP surplus of 0.5% in FY 2020/21; rising to 2% in 2022/23 and maintain a 2% average growth rate till 2025. Logistics, agriculture, education and healthcare led the rebound. This multi-faceted health and economic crisis underscores the urgency of advancing the human capital agenda and strengthening social protection, as well as adopting structural reforms to enhance private sector activity and job-creation. "Growth in Egypt is expected to have remained positive, but declined from 5.6% in FY2019 to 3.5% in FY2020, and then further to 2.3% in FY2021, before rebounding in FY2022." COVID-19 is dampening growth, undermining external income sources, disrupting fiscal consolidation and exacerbating long-standing challenges. COVID-19 is dampening growth, undermining external income sources, disrupting fiscal consolidation and exacerbating long-standing challenges. This growth is expected to surge up to 5.8% in 2024/25. Economic vulnerabilities At the onset of 2020, many believed that Egypt was finally turning the page on years of turbulence, both political and economic. It also aims to increase total agricultural output by 30%. Domestic demand and foreign inflows will be muted early in the 2021-25 forecast period but economic growth will rise above 5% a year from 2022/23. Maintaining the recently achieved macro-economic gains is crucial for the economy’s resilience against such a severe shock. Growth is expected to be undermined by COVID-19. Egypt’s real GDP growth is projected to slow to 2.2% in 2020, from 5.6% in 2019, according to the African Economic Outlook 2020 Supplement amid COVID–19.. Economic activity slowed down, notably since the implementation of social distancing measures and the temporary suspension of air traffic. CAIRO – 29 April 2020: There are 5 factors that will affect the Egyptian economy as a result of the coronavirus pandemic, which necessitates the importance of the partners ’cooperation with Egypt to support it in the coming period, Minister of International Cooperation Rania Al … In April 2020 the Ministry of Finance downgraded its growth forecast for FY 2020/21 from 4.5% to 3.5%, before reducing this further to 2% in May 2020. Despite a drop on the demand side, however, the Egyptian economy was showing significant signs of improvement at the start of this year. Thus, Global data and statistics, research and publications, and topics in poverty and development, [PDF] Egypt's Economic Update, October 2020, Environmental and Social Policies for Projects. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. is estimated to have contracted by at least 1.1% in 2020 as a result of the novel coronavirus (COVID-19) pandemic. In 2020, Egypt's economy was impacted by the COVID-19 pandemic, but proactive measures taken to address health and social needs and support the most directly affected sectors helped mitigate the economic and human impact of the crisis (IMF). Key sectors, such as tourism and natural gas, are expected to experience a slowdown due to restricted international travel and the crash in oil prices. Egypt had a GNP growth rate of 5.6 percent in FY2018/2019, unemployment stabilized at around 8 percent, while inflation was down to single digits and seemed to be under control. Nevertheless, this makes Egypt the only Arab economy expected to experience positive GDP growth in 2020 and one of … Economic growth: the IMF expects Egypt’s economy to grow by 5.5% during FYs 2021/22 and 2022/23. Government debt is projected to increase from 90.2% of GDP in end-FY2019 to 93.8% of GDP in end-FY2020. IMPACT OF COVID-19: As of December 1, 2020, 6,666 deaths had been attributed to the pandemic in Egypt, and economic growth was forecast to decline to 3.5 percent for the year. According to IMF estimates, GDP growth fell from 5.6% in 2019 to 3.5% in 2020. Egypt’s Minister of Planning and Economic Development Hala al-Saeed, however, said the country had achieved a GDP growth of 5.6 percent during the first half of the 2019/2020 fiscal year, during a ministerial meeting on Wednesday discussing economic and social issues. Vulnerabilities persist however, including underperformance in exports and foreign direct investment, which may be aggravated by the disruptive repercussions of the COVID-19 pandemic. Egypt Takes Proactive Approach to Limit the Pandemic’s Fallout. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. To learn more about cookies, click here. 2) The rank that you see is the CIA reported rank, which may have the following issues: Egypt’s growth in Fiscal Year 2018-2019 increased to 5.6% (up from 5.3% the previous year), a rate that was sustained through the first quarter of Fiscal Year Economic policy will focus initially on supporting sectors hit by the coronavirus (Covid-19) pandemic, with fiscal consolidation slowed but not reversed as part of ongoing engagement with the IMF. If you continue to navigate this website beyond this page, cookies will be placed on your browser. Policy responses are already being put in place, including the 300-basis point monetary policy rate cut, forbearance measures on credit, and signals of fiscal stimulus in the Fiscal Year 2020-21 budget. In case of prolonged disruptions, the impact is expected to affect the availability of final products and lead to a new wave of inflation, thereby challenging the recovery of households’ purchasing power. During H1 2020/21, the economy grew 2.8%, with GDP growth doubling to 1.4% in the second fiscal quarter compared to 0.7% in the first. However, the one-off cancellation of the debt owed by the government to the Social Insurance Funds (SIF) worth LE371 billion (6.4% of GDP) is estimated to bring down government debt to 87.4% of GDP in end-FY2020. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. Egypt’s external debt grew by 11.2 percent during the first nine months of 2020 to post $125.3 billion by the end of September, up from $112.6 billion in … The capital and financial account surplus may decline with increasing outflows from Egyptian treasuries amidst turbulent global financial markets. Further, the sharp decline in oil prices, coupled with recent restrictions on travel to GCC countries, may adversely impact remittances. Around 2.7 million jobs were lost during Q4-FY2020, pushing unemployment to 9.6% (from 7.7% in the previous quarter), with employment losses mainly reported in the retail and whole-sale trade, manufacturing, tourism, transport and construction sectors, especially among informal workers. Under the scenario that the pandemic will persist through early-2021, COVID-19 impact will be spread across two fiscal years, with the adverse effect expected to be more severe in FY2021. An emergency response package worth LE100 billion (1.7% of GDP) augmented health expenditures and social protection programs, including a one-off cash grant to irregular workers and extending the existing cash transfer programs. The trade deficit may deteriorate with the disruption of global trade, as travel is restricted and supply chains are disrupted. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. Social hardship is aggravated by the ensuing job losses. Economic Indicators for Egypt including actual values, historical data charts, an economic calendar, time-series statistics, business news, long term forecasts and short-term predictions for Egypt economy. This new economic approach helped Egypt’s economy grow by 8% between 2004 and 2009. However, in 2011, the government underwent a political revolution that left significantly reduced its growth. Under the new reforms, Egypt aims to have agricultural products make up 25% of its total exports by 2024, up from 17% in 2020. The World Bank Group works in every major area of development. This page has economic forecasts for Egypt including a long-term outlook for the next decades, plus medium-term expectations for the next four quarters and short-term market predictions for the next release affecting the Egypt economy. It is, however, projected to recover by 6.1% in 2021. After having recovered from the internal political crisis and revolutionary uprising of 2011, the Egyptian economy recently slowed down due to the outbreak of the COVID-19. Egypt’s unemployment rate declined to a decade low of 7.5% in June 2019, before slightly rising to … No claims are made regarding the accuracy of Egypt Economy 2020 information contained here. Under a baseline scenario of the novel coronavirus (COVID-19) pandemic limited to the first half (H1) of 2020, the report added that Egypt will see a slight rebound to 2.7% in 2021. COVID-19 caused losses of about $140bn for Arab region in 2020, says UN commission. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. The situation underscores the urgency of resolving structural challenges to safeguard a sustained recovery, which should focus on addressing business environment constraints, while enhancing revenue-mobilization to create the fiscal space needed to invest more in people. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. 2020 Egypt economy contracts 1.1%, but 6.1% recovery projected in 2021: ESCWA. The pandemic risks putting a strain on the country’s health care system, in addition to other important implications on the economy through several channels. Despite the expected gradual recovery of private consumption and investment, the pandemic is expected to hamper growth through its effect on production and exports. To learn more about cookies, click here. Forbearance measures were introduced in the form of delayed tax filing and loan repayments, in addition to subsidized credit to targeted sectors. All suggestions for corrections of any errors about Egypt Economy 2020 should be addressed to the CIA or the source cited on each page. Financing under the SBA follows the $2.8 billion approved in May under the IMF’s Rapid Financing Instrument. Global data and statistics, research and publications, and topics in poverty and development, [PDF] Egypt's Economic Update, April 2020, Environmental and Social Policies for Projects. A severe shock possible experience supply chains are disrupted the economy ’ Fallout. No claims are made regarding the accuracy of Egypt economy 2020 information here... To optimize functionality and give you the best possible experience be addressed to the increase in growth waited for for! 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