AfDB expects Egyptian growth rate to up to 5.8% in 2020, 6% in 2021

CAIRO - 4 February 2020: The African Development Bank expected the Egyptian economic growth rate to inch up to 5.8 percent in 2020 and to 6 percent in 2021 in comparison with 5.6 percent in 2019.

In a report on African economic outlook 2020, the bank attributed this rise to the economic reform measures adopted by Egypt since 2016.

The report hailed the social protection measures adopted by Egypt as well as ensuring that subsidized energy products reach only those who deserve along with steps to improve the business climate.

The report - which included 54 countries - said the tourism, construction, gas and oil sectors led the march of development, referring to declining consumption.

The report added that exports and investments flourished.

Under a wide-scale plan to boost the Egyptian economy, added value tax was imposed in addition to gradual decline of energy subsidies. This has led to shaving off financial deficit from 12.5 percent of Gross Domestic Product in 2016 to 8.7 percent in 2019.

Initial reports registered surplus over the past two years and debt growth was contained.

Inflation rates dropped to 8.7 percent on annual basis in July 2019, the lowest in four years.

The unemployment rate also receded to 8.1 percent in the first quarter of 2019, the lowest in 20 years.