IMF raises its forecast for Egyptian economy growth to 3.3% in 2021

CAIRO – 12 October 2021: The International Monetary Fund (IMF) raised its forecast for the growth of the Egyptian economy during 2021, while lowering its estimates for the growth of the global economy.

In the latest World Economic Outlook report issued at the fall meetings of the International Monetary Fund on Tuesday, the IMF expected Egyptian GDP growth in 2021 at 3.3 percent, up from the IMF’s previous forecast of 2.5 percent last April.

The report expected an increase in GDP growth rates in Egypt during 2022 to reach 5.2 percent, and then 5.8 percent in 2026.

In June, the World Bank commended the Egyptian government for adopting more reform steps during 2021 in order to address the repercussions of the pandemic.

At the same time, the Bank expected in its June World Economic Outlook report that the growth of the Egyptian economy would rise during 2022 and 2023, recording 4.5 percent and 5.5 percent, respectively.

The World Bank stated that Egypt raised the minimum wage for public sector employees as of July, extended the suspension of fees imposed on most financial transactions for an additional six months starting from the beginning of 2021, and took more measures to boost lending.

The "World Investment Report for 2021" issued by the United Nations Conference on Trade and Development (UNCTAD) revealed that Egypt still maintains its lead in receiving foreign direct investment in the continent during the year 2020 by $5.9 billion, despite the decline caused by the Corona pandemic in the volume of inward investments to the brown continent.

The International Monetary Fund (IMF) lowered its forecast for global economic growth to 5.9 percent during 2021, which is about 0.1 percentage point lower than its expectations included in the World Economic Outlook Report for 2021 issued last July.

This reflects a decline in the performance of the economies of developed countries, which is attributed to the disruptions they are experiencing in energy supplies, as well as the developing countries facing several economic challenges following the spread of the “Covid-19” pandemic.