Finance Minister announces: Egypt adopted expanding economic policies during COVID-19 crisis to achieve sustainable growth rates.

• The unprecedented development activities have been reflected significantly in financial performance indicators over the last 9 months.
• Government confronted the pandemic by  proactive and flexible techniques to avoid loss of economic gains.
• Thanks to the less severe measures and the ability to resume work per preventive measures, national economy gained momentum anew.
• IMF increased Egypt's growth rate forecasts to 5.7% in the next FY.
• Fitch: Egypt is among three exclusive MENA countries that would regain their growth rates registered before the pandemic.
• BNP Paribas: the Egyptian economy achieved growth rate of 3.1% in FY 2020/21.
• Egypt's GDP accelerates by 5.3% in FY 2020/21.

 

Minister of Finance, Dr. Mohamed Maait, stated that Egypt managed to implement expanding economic polices during Corona outbreak in an attempt to achieve an inclusive and sustainable growth and raise citizens' standard of living. 

This methodology helped significantly in maintaining economic gains of the economic reform program and acted as a safe way out for the State's economy.

Dr. Maait highlighted the unprecedented development efforts exerted by the government across all fields to optimize local and foreign investments alike, create new direct and indirect job chances, localize advanced industries in Egypt, double economic abilities, expand export base, and boost Egypt's competitiveness at international markets. All these help to diversify growth structure and  provide the Egyptian economy with resilience in dealing with the internal and external crises  and in mitigating shock impacts.

According to IMF report, the Egyptian economy outperformed many economies in the region, jumping to be the second largest Arab economies in 2020, following Saudi Arabia, with a total value of $ 361.8 billion, noted Dr. Maait.

As stated by Fitch Solutions, an international research center affiliated to Fitch Credit Ratings, Egypt is one of three MENA countries that has the possibility of regaining their growth rates  in 2021 before the outbreak of Corona. Thanks to the flourishing of the oil, natural gas and tourism sectors and their 5% growth rate, the Egyptian economy proved its success in dealing with Corona crisis and in its fast recovery from the subsequent impacts. Fitch Solutions experts projected Egypt's GDP to grow by 2.9% in FY 2021/2022.

In the same context, Dr. Maait noted that BNP Paribas bank expected  the Egyptian economy to register a 3.1% growth in FY 2020/21 and a 5.3% increase in GDP in FY2021/22,  all thanks to the rebound of consumptive spending , development of building sector, and the government's  structural and financial reforms.

As illustrated by Dr. Maait, IMF increased its estimates of the Egyptian economy in FY 2021/22 to 5.7% compared to 5.5% in its last January report. IMF expects an acceleration in Egypt's growth rates to record 5.8% in FY2025/26,  along with  a drop in inflation rates in current FY to 4.8%, down from 5.7% in FY 2019/2020, in a way that surpasses the regional counterpart economies to reach 12.4%.

These figures translate government's efforts in adopting proactive and flexible economic methodology that safeguards economic gains , along with supporting the most vulnerable categories and resuming work activities with total abidance to the anti-pandemic preventive measures.

Dr. Maait reiterated that all the considerable development activities performed by the government rendered positive indicators for the budget financial performance from July to March in FY 2020/21, with an initial surplus of EGP 25 billion.

Despite negative impacts of the pandemic, the government adopted balanced financial policies  based on increasing public investments over the last 9 months; thus, reaching a value of EGP 194.7 billion by a 72.3% annual growth. Debt terms were also extended to stand at 3.2 years in June 2020 instead of 1.3 years in June 2013.

On his part, Mr. Ahmed Kouchouk, deputy minister of the financial policies and the institutional development, pointed out that IMF's positive outlook, as reflected in its estimates of  a 6% increase in global economy,  indicates an acceleration in anti-Corona vaccine rollout programs worldwide. This helped countries to fully adapt to work amid the pandemic in line with the financial measures adopted by many countries.

He further noted that the IMF praised in one of its reports Egypt's effective spending of the financial support facilities, equivalent to 2% of GDP, that were allocated to Egypt to confront the pandemic repercussions.