28 November 2020 03:21 AM

Int'l economic institutions highlight Egypt's success in dealing with coronavirus crisis- cabinet

Tuesday، 20 October 2020 - 12:27 PM

The cabinet media center released on Monday Oct 19, a report that included infographics highlighting the international economic institutions’ views about Egypt’s success in dealing with the coronavirus crisis and their positive forecast of a number of economic indicators in the country.

The International Monetary Fund (IMF) raised its forecasts for the Egyptian economy growth indicators in 2020.

The IMF expected in the October release of the World Economic Outlook an increase in the growth rate of the Egyptian economy to 3.5 percent, so that Egypt would maintain its position among countries in terms of growth rates, in light of a wave of contractions for the largest economies around the world, with the continuing repercussions of the outbreak of the new coronavirus.

This comes as a clear indication of the success of Egypt's structural and economic reform measures and the success of the government's plan in facing the challenges posed by the Covid-19 pandemic, the IMF said.

At the same time, it expected that the Egyptian economy would achieve growth rates of 5.6 percent over the medium term by 2025.

It lowered its unemployment rate forecast to 8.3 percent, down from 10.3 percent in an earlier forecast.
The IMF also expected the current account deficit to decline to 3.2 percent of GDP in 2020 from 4.3 percent in previous forecasts, and also expected the current account deficit to continue to decline to 2.5 percent in 2021, and then, by 2025, the current account balance will stabilize at 0 percent.

The report also showed The Economist’s forecast of the total deficit percentage of Egypt's GDP, indicating that it would decline during the 2019/2020 fiscal year to 9.4 percent, while it is expected to record 10.6% during FY 2020/2021, and 8.7% in FY 2021/2022, 8.1% during FY 2022/2023, 7.4% during FY 2023/2024, and 7.2% during the 2024/2025 fiscal year.

As for the current account deficit, The Economist expected it to register 3.4% out of the GDP during the 2019/2020 fiscal year, while it is forecast to record 3.6% during FY 2020/2021, 3.3% in FY 2021/2022, 3.1% during FY 2022/2023, 2.6% during FY 2023/2024, and 2% during FY 2024/2025.

The report also reviewed Moody's view of the Egyptian economy, with the credit rating agency keeping its credit rating for Egypt at the B2 level, while maintaining a stable outlook for the country's economy.

Moody’s indicated that this outlook is supported by the diversification of the Egyptian economy, and its remarkable improvement after the implementation of the economic reform program.

MENA


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