Economy
From The Report: Egypt 2022
View in Online Reader

Egypt’s robust fundamentals – supported by a diversified economy, sustained levels of consumer spending and a large workforce – has created a dynamic business climate and helped further develop the economy. This has enabled the country to avoid some of the more severe repercussions of the Covid-19 pandemic faced by neighbouring nations. According to IMF forecasts, GDP is expected to expand from $402.8bn in 2022 to $584.9bn in 2026. While Egypt’s oil and gas sector has been a significant recipient of investment – attracting $74bn between FY 2014/15 and FY 2019/20 – the economy is diversified, with opportunities across multiple sectors. Industry was the largest contributor to the economy in FY 2020/2021, followed by retail, agriculture and real estate. This chapter contains a viewpoint with Mohamed Maait, the minister of finance.

Articles from this Chapter

Overview

Dynamic climate: The country’s robust fundamentals place it in an advantageous position as the economy rebounds from the pandemic
OBG
plus

Egypt’s economy proved resilient during the Covid-19 pandemic, supported by structural changes associated with an ambitious economic reform programme in the years leading up to the crisis. The country was the only one in the MENA region to record positive GDP growth in 2020, reflective of the government’s emphasis on facilitating business continuity and targeting social support with health measures aimed at stemming the spread of Covid-19. Egypt’s robust fundamentals – supported by a diversified…

Viewpoint

Securing the future: Mohamed Maait, Minister of Finance, on stimulating economic activity and providing relief to targeted sectors and groups
OBG
plus

Viewpoint:Mohamed Maait In an implementation of presidential directives, the support and social protection allocations have been increased to LE356bn ($22.6bn) in the new draft general budget. The Covid-19 pandemic and the challenges brought about by the war in Ukraine have created an unprecedented inflationary wave. This initiative will support the sectors and groups most affected by the current global context. We will overcome this with the solid will and strong determination of the government…

Analysis

Spending power: Household consumption patterns are expected to be a driver of growth, supported by a burgeoning middle class
OBG
plus

Egypt was one of the few economies to witness positive GDP growth in the first two years of the Covid-19 pandemic, fuelled in part by strong consumer spending. According to a November 2021 report from Fitch Solutions, real household spending expanded by around 7% in both 2020 and 2021 – despite the widespread impact of the pandemic, which hit key sectors such as tourism particularly hard. This performance was fuelled by easing inflation – with the figure falling from 23.3% in FY 2016/17 to 5%…

Analysis

Diversified offerings: The government turns to several new sources of financing in an effort to bridge the fiscal deficit
OBG
plus

Despite a successful economic reform programme implemented in 2016, Egypt continues to grapple with a fiscal deficit. In FY 2019/20 Egypt recorded a deficit of LE462.8bn ($29.4bn), the highest since the start of the 2016 reform initiatives. While this figure contracted to LE432.1bn ($27.5bn) in FY 2020/21, it is forecast to expand to LE475.5bn ($30.2bn) in FY 2021/22, according to a December 20201 report from the Ministry of Finance (MoF). While the deficit has widened, as a proportion of GDP it…