Contributing to Egypt’s recovery and the boosting of its positive real GDP growth were the return of direct flights to the country, the expansion of its vaccination program
Arab Monetary Fund (AMF) recently revealed its projections for Egypt’s real GDP growth, forecasting a 5.4% increase in 2022 on condition of the recovery of the global economy, which it expects to strengthen tourism and the external demand in the country, according to the Arab Economic Prospects report issued recently by AMF.
“The health crisis caused by the pandemic outbreak has not hindered Egypt’s economic growth. Egypt was an exceptional model globally to attain a positive growth in 2020, amid the first wave of the pandemic, at 3.6% despite the negative implications of the crisis,” said the report.
The AMF credited Egypt’s economic growth to its continuous economic reforms that boosted the economy’s flexibility and resilience towards shocks, as well as its incentive packages with the objective of rejuvenating local demand, expecting that the country’s economic growth will continue its robust pace despite the COVID-19 crisis.
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Contributing to Egypt’s recovery and the boosting of its positive real GDP growth were the return of direct flights to the country, the expansion of its vaccination program, and that it did not impose a full lockdown.
Egypt’s ongoing second wave of reforms, which focus on structural reforms, are also expected to drive the country’s economic growth in 2022 and over the medium term, according to the report.
The report classifies Egypt as an oil-importer country.
For the oil-importer countries group, the report projects its real GDP growth to increase to 4.6% in 2022, up from 2.5% attained in 2021. This increase will be supported mainly by external demand recovery and the rebound of trade activities – particularly trade, tourism and investment – due to increased vaccination.
On the Arab level, the report expected Arab countries’ real GDP growth to jump to 5.2% in 2022, up from 2.7% recorded in 2021, driven mainly by the projected increase in oil production in the frame of OPEC+ deal.
