Egypt weathers Covid’s repercussions

Egypt’s macroeconomic performance has proved its resilience against the severe impact caused by the pandemic but with a number of challenges ahead, according to the World Bank’s Egypt Economic Monitor report issued on Tuesday.

For over 18 months during the Covid-19 pandemic, Egypt’s macroeconomic indicators have been proving its resilience despite the severe impact the pandemic has resulted in, with expectation for the country’s economy to approach its pre-pandemic levels during the current FY 2021-22 (ending in June) with a projected 5.5 per cent in real GDP growth, the report said.

Egypt’s GDP is expected to reach LE7.1 trillion in the current FY 2021-22, targeting a real GDP growth rate of 5.6 per cent, compared to 3.3 per cent recorded in FY 2020-21, according to the Ministry of Finance.

“Macroeconomic stabilisation and energy sector reforms implemented in recent years have helped build resilience, and the mobilisation of international financing has contributed to keeping foreign reserves at rather ample levels,” the report said.

Egypt’s international reserves came in at $40.9 billion in December. The reserves have been rising since June 2020, after dropping to $36 billion from more than $45.5 billion due to the financial impact of the coronavirus pandemic.