The forecast sets the pace of recovery of Egypt’s gross domestic product (GDP) as slowing down to 2.5% in 2020/21, before picking up to 4.5% in FY 2021/22
The European Bank for Reconstruction and Development (EBRD) has adjusted their economic forecast for Egypt, predicting that the economy will rebound to 4.2% in 2021 and 5.2% in 2022.
The forecast sets the pace of recovery of Egypt’s gross domestic product (GDP) as slowing down to 2.5% in 2020/21, before picking up to 4.5% in FY 2021/22.
According to it Regional Economic Prospects report issued this month, foreign direct investment flows will recover, with weak expectations for the tourism sector and slow vaccination operations will slow major investment momentum.
The EBRD maintains Egypt as one of the few countries that announced recording economic growth during 2020 led by improvements in wholesale and retail trade, agriculture, telecommunications, and construction.
During the first 3 quarters of the of fiscal year (FY) 2020/21, Egypt’s economic growth averaged 1.9% year-on-year, which followed a decline in FY 2019/20 to 3.6%.
EBRD expects continued growth for the telecommunications sector, with the decline of unemployment rates to boost consumption and private investment again.
“The boom in the telecommunications sector will continue to sustain growth, whilst falling unemployment rates will support consumption, and private investment and [foreign direct investment] FDI flows will pick up,” the report said.
EBRD Chief Economist Beata Javorcik said, “Although the revised forecasts give reasons to be optimistic, huge uncertainty remains with regards to the path of the novel coronavirus (COVID-19) Delta variant.”
