The Institute of International Finance expects that Egypt's economy will grow by 2.3 percent for the current fiscal year that ends in June 2021, after achieving a growth of 3.6 percent in 2019/2020, indicating that the Egyptian economy managed to survive the Corona pandemic relatively well.
The institute, whose membership includes more than 400 banks and financial institutions around the world, believes that the Egyptian economy will begin to grow at rates greater than 4 percent by the next fiscal year, as it is expected that the Egyptian economy in 2021/2022 will achieve a growth of 4.7 percent, 4.9 percent in 2022/2023, and then 5.1 percent in 2023/2024.
According to the IIF, monetary policy has been appropriately eased, and the Central Bank of Egypt has room for more support to the recovery. It also revealed that the current account deficit is expected to increase to 4 percent in the current fiscal year, while the external financing will remain sufficient. Reducing the large fiscal deficit and debt will require a commitment to fiscal discipline once the Covid-19 crisis decreases, according to the Institute of International Finance.
The institute expects that the budget will achieve a deficit during the current fiscal year by 8.5 percent of GDP, and then it will decline to 7.5 percent in the next fiscal year, 6.5 percent in 2022/2023, and then 5.5 percent in 2023/2024. Advances in digital transformation and other reforms will lead to increased potential growth and greater financial inclusion, according to the report.
Source (Al-Arabiya.net website, Edited)
