Egypt’s GDP forecast at 3.7- 3.8% in FY 2019/2020: Minister

Improvement witnessed in Egypt’s economy prior to the outbreak

Image used for illustrative purpose. View Of Cityscape With River In Foreground.

Image used for illustrative purpose. View Of Cityscape With River In Foreground.

Getty Images/Saif Alsadoon
ArabFinance: The Egyptian government expected a gross domestic product (GDP) ranging from 3.7% to 3.8% by the end of fiscal year (FY) 2019/2020, Minister of Planning and Economic Development Hala el Said announced on July 14th.

El Said noted that Egypt’s economic growth rate is considered good when compared with the expected growth for both emerging and developed markets.

The country’s current economic status tops the emerging markets, the minister stated.

She further noted that the impact of the COVID-19 pandemic on the economy is huge and cannot be compared with the Great Recession or the 2008 financial crisis.

The minister attributed the high GDP rate expected for FY 2019/2020 despite the COVID-19 crisis to the improvement witnessed in Egypt’s economy prior to the outbreak.

She elaborated that the first half of FY 2019/2020 registered a GDP at 5.6%, while the unemployment rate declined to 8% during the second quarter of the fiscal year.

Meanwhile, the average of the inflation rate stood at 5% during the period from June to March of FY 2019/2020.

In addition, the foreign reserves increased to cover 8.5 months of the imports until March this year.

El Said also added that the non-petroleum trade balance deficit plummeted by 24% over the period from January to March 2020, while the foreign direct investment grew by 19% from June to December 2019.

Egyptian expats’ remittances also registered an increase of 13% during the first half of FY 2019/2020, while deficit-to-GDP ratio fell to 8.1%.

In April, international institutions expected Egypt to top the list of high economic growth rates among the region during 2020.

El Said announced in May that the country’s economic growth rate fell 5% during the third quarter of FY 2019/2020 due to the spread of COVID-19.

Meanwhile, the Regional Economic Prospects report published by the European Bank for Reconstruction and Development in May predicted Egypt’s GDP to stand at 2.5%.

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