Growth rates of Egyptian economy to reach 5% in 2021: Executive Director of IMF

CAIRO – 9 June 2021: Egypt is one of the few countries that achieved growth rates during the pandemic driven by economic reforms and positive growth by the end of 2019, amid expectations that growth rates will continue between 2.7 percent and reach 5 percent by the end of the new fiscal year, according to Mahmoud Mohieldin, Executive Director of the International Monetary Fund and United Nations Special Envoy for Financing for Sustainable Development.

"The Middle East region has lost 5 percent of its growth rates due to the pandemic, amid expectations that it will reach 1 percent and increase to 3 percent within two years, which are positive rates, but not high rates," Mohieldin stated.

He added that there are expectations that growth rates in America will reach 6 percent by the end of the year, to rise within two years, while the growth rate in China will reach 8 percent, amid expectations that growth rates in Europe will reach from 3 to 4 percent, and it is expected that it will reach 4.3 percent in emerging markets.

He stressed the need for future economic policies to be flexible, with the need to encourage employment towards sectors that will grow, and to expand social security.

This came during a seminar held by the Egyptian Youth Business Association via the Zoom application, to talk about the future of the Egyptian economy after the Corona pandemic.

Mohieldin urged companies to reformulate their policies due to the presence of high levels of uncertainty related to the possibility of economic closure again at any time, and in light of expectations of high costs, inflation, and an increase in unemployment.

The Executive Director of the International Monetary Fund pointed to the importance of investing in sustainability and digital transformation, and benefiting from the various and important government initiatives that are expected to attract investments, such as the "Dignified Life" initiative.

He stated that the initiative aims to localize development, in addition to the need for the private sector to support and participate in the state in the trend towards export, focusing on digital transformation, supporting investment in the sector's infrastructure in all universities and schools, and investing in sustainable development because of its significant impact on the economy.

Mohieldin stressed the importance of investing in expanding existing production structures, stressing the need for economic cooperation with Arab and African countries, focusing on supporting supply chains, and focusing on supporting the above with digital transformation. He added: "Egypt can be an important center in supply chains, attract huge investments, and link them to population centers, calling for the need to communicate with successful experiences in various countries of the world."

Talking about how small and medium-sized companies can benefit from the current conditions, Mohieldin said: "Companies must support digital transformation, sustainability, and look at credit financial policies, the quality of the sectors in which they operate or wish to work and provide the required financing."

On Africa and the most important gains expected to be obtained and benefited from in the African market, and the role of the "Egyptian Youth Business Association", Mohieldin said that the African market possesses high advantages with the need to be fully aware of the culture and marketing capabilities of African markets, and the availability of partners familiar with the nature of the market.

He emphasized the diversity of sectors in Africa; there are opportunities in sectors such as “education, health care, tourism, infrastructure, and mining of different segments, and the need to communicate with similar associations in Africa and support bilateral meetings.