Egypt’s Minister of Finance Mohamed Maait has said that the Egyptian economy will be able to recover quickly from the repercussions of the novel coronavirus (COVID-19) pandemic.
The country’s economy remains in high esteem among international institutions in light of the pandemic, primarily due to its positive indicators that reflect its resilience in the face of internal and external crises.
In a statement on Wednesday, Maait added that Egypt is the only country in the Middle East which will restore growth rates to pre-COVID-19 levels. In recent comments on the state of the domestic economy, Standard Chartered Bank estimated that Egypt will record growth rates of 5.5% of GDP during fiscal year (FY) 2021/22.
The minister said that Standard Chartered Bank’s recent expectations for the Egyptian economy are consistent with its previous estimates of before the pandemic. The bank had projected that Egypt will rank among the top 10 economies in the world in 2030, and according to the rate of GDP, it will jump from 21st to seventh in the world.
He also said that the International Monetary Fund (IMF) has raised its estimate of Egypt’s growth rate during the current FY from 2% to 2.8%. The rise means that, like the World Bank, the IMF projects the country’s growth rate will jump to 5.8% in the next FY. This indicates the local economy will see a continuing gradual recovery from the repercussions of the coronavirus crisis.
Moody’s has also granted Egypt a new certificate of confidence, as the only country in Africa to maintain a positive growth path before and during the pandemic. Meanwhile, a Fitch Ratings-affiliated research institution expects a growth rate of 3% in the current fiscal year.
Maait said that the elaborate implementation of its economic reform programme provided the Egyptian Government with a financial space through which it was able to increase public investment. It also allowed the government to enhance spending on improving health care and educational services.
This ran alongside enhancements of projects to digitally transform the country, with the importance of this aspect doubling in light of the pandemic due to the demands of social distancing.
The minister also said that the government has succeeded in managing the novel coronavirus (COVID-19) crisis efficiently. He noted that the Egyptian policy was based on a flexible, proactive methodology aimed at achieving a balance between health care for citizens, and maintaining production.
Maait pointed out that the economic and financial measures taken by the state, under its wise political leadership, to confront the repercussions of the coronavirus crisis, contributed to its success in this difficult test compared to other emerging economies.