The Ministry of Planning and Economic Development issued a report containing the views of a number of international reports on the performance of the Egyptian economy in light of the consequences of the Covid-19 virus, as part of the ministry’s keenness to follow up the views of international institutions on the economic performance of Egypt.
Dr. Hala Al-Saeed, Minister of Planning and Economic Development, explained that the ministry is keen to follow up the views of various economic institutions around the world in the performance of the Egyptian economy, especially in light of the conditions that the world is currently facing with the Corona virus, referring to the opinion of the Institute of International Finance, which made it clear that Egypt has adapted well to the consequences Coronavirus, supported by an effective and timely response from the public health sector, and the implementation of a package of financial and monetary measures.
Dr. Hala Al-Saeed also reviewed the International Monetary Fund’s praise for the policies of the Central Bank and the Egyptian government, explaining that the Fund indicated in its report that Egypt has taken good steps that include expanding the provision of social support, providing credit to companies, which is a good policy from the Central Bank and the role of financial authorities in setting up systems Protection from bankruptcy and job loss.
The report of the Institute of International Finance stated that Egypt is the only country in the Middle East and North Africa that avoided recession in 2020, as the institute expected growth to be supported by appropriate fiscal and monetary policies, and progress in reforms before the pandemic, and the report suggested that partial closure and other restrictions may have it. Less specific economic impact during the second half of the current fiscal year, as consumers and companies find ways to adapt and benefit from the great development in digital transformation and financial technology.
The Institute’s report added that the monetary policy stance is appropriate, and that there is room for further monetary easing based on the absence of inflationary pressures, and its continued alignment with the central bank’s targets between 5 and 9% by the end of the fourth quarter of 2022, in addition to the growth of credit to the economy 21% by the end of last December, And that the banking sector has been well prepared to face the shock of Corona.
Regarding the International Finance Institute’s expectations for the Egyptian economy indicators, the institute expected the real growth of the economy to reach 4.7% in 2022, to rise to 5.1% in 2024.
The report also referred to the authorities’ expansion of their social protection program, with a focus on addressing the health emergency and supporting the most vulnerable groups by expanding the cash support program “Takaful and Dignity”, reducing electricity tariffs for the industrial and tourism sectors, and postponing taxes on capital gains until further notice.
In its report, the institute praised the development in the field of digital transformation, as it may lead to improved competitiveness and increased productivity of labor and capital, as the pandemic raised the demand for electronic commerce, and that Egypt has made progress in the field of communications and information technology by injecting large investments in rebuilding capacities, training programs and digital services. And infrastructure challenges, in addition to the fact that Egypt’s Vision 2030 also includes the communications and information technology sector, a digital transformation in education, health and other government services.
According to the report of the International Monetary Fund, it included advice to the Egyptian government to maintain this support while setting priorities, as economic reforms made Egypt stronger in the face of the Corona crisis, and the Fund confirmed that it will continue with the Egyptian government to endure crises in the future.