Egypt to be only country in MENA region achieving positive economic growth in FY20/21: IMF

CAIRO – 19 October 2020: The International Monetary Fund (IMF) declared Monday that Egypt is the only country in the Middle East and North Africa region that will achieve a positive economic growth in the FY2020-2021 by virtue of the economic reform program undertaken by the state since 2016.

The reforms are embodied in currency floating and gradually lifting energy subsidies among others.

Egypt’s growth rate in FY 2020/2021 is expected to drop to 2 percent due to COVID-19 pandemic with speculations it will rebound to 6.5 percent in FY2021/2022, the IMF said in a report.

The IMF issued a report in August on the files related to Egypt's obtaining of an emergency financial assistance of $2.77 billion to meet the urgent balance of payments needs stemming from the outbreak of the COVID-19 pandemic.
 

In its report, the IMF asserted Egypt's strong ability to fulfill its external obligations, adding that improving and developing the social safety net remains an important priority for the Egyptian government as it examines opportunities to expand social support to include more vulnerable groups.
 

The fund also underlined positive and important moves taken by the government within the framework of shoring up the country's economy, controlling public finances and reducing public debt as part of its successful economic reform program.
 

Egypt is committed to a public expenditure review that covers social protection, health, and education programs, according to the report.
 

The fund said that Egypt is proceeding with structural reforms that include taking measures to improve the efficiency of resource allocation by enhancing transparency and accountability, strengthening competition and improving governance.
 

In June, the IMF approved a 12-month Stand-by Arrangement (SBA) loan to Egypt, with total access of about $5.2 billion to address balance of payments financing needs arising from the COVID-19.