According to Egyptian Planning Minister Hala el-Saeed, “Egypt’s economic growth rate will drop to 2% in the next fiscal year 2020/2021, if the coronavirus crisis continues until December 2020”.
Hala el-Saeed made the statement during a discussion on the draft general state budget for the 2020/21 fiscal year before the Planning and Budget Committee of the Egyptian parliament, reports Egypt today.
“There are two scenarios to recover from the coronavirus crisis, which are based on controlling the pandemic by the end of June 2020 or the end of December 2020. And each of them would affect different sectors to different degrees” she said.
Thus, the Egyptian authorities predict a growth of 3.5% in the next fiscal year, if the coronavirus epidemic ends at the end of the current fiscal year, namely June 30, 2020.
The minister also stressed that in the event of a recovery, not all sectors will recover in the same way. Some will quickly recover, while others will take longer to recover.
On the other hand, some sectors have the potential to take advantage of the pandemic. These include agriculture, communications, information technology, the pharmaceutical and chemical industry, and construction and construction.
According to Hala el-Saeed, Egypt was forecast to grow 5.8% in the 2019/2020 fiscal year. But with the slowdown in growth in the third and fourth quarters, it should now stand at 4.2%.
Source Agence Ecofin may 2020