Egypt fact sheet: robust economic recovery prospects ahead

Egypt entered the COVID-19 crisis in relatively good shape. The positive result of past macroeconomic and structural reforms implemented since 2016 under the IMF guidance allowed the country to build up buffers , that helped it to act timely to contain the pandemic ’s economic and social impact. In the 2019/2020 fiscal year (FY), Egypt’s GDP was 3.6%, one of the rare countries beside China and Turkey to post growth in 2020. GDP growth is expected to reach 2.8% YoY in FY2020/21 and to rebound further to 5.2% in 2021/22. However, the repercussions of the global pandemic have weighed on that recovery process bringing back to the spotlight structural weaknesses and old challenges: a weak private sector, sluggish job creation, high youth unemployment (27%), an elevated public debt-to-GDP ratio (90%) and limited FDIs. To face the post-pandemic challenges, the country will have to focus on the near-term fiscal and monetary policies - aiming at supporting economic growth - whilst continuing to work on the ongoing structural reforms it has embarked on over the past five years.