Capital Economics gloomily sees Egypt in worst recession since 1954 due to coronavirus

Egypt could be plunged this year into its worst economic recession since 1954 due to the novel coronavirus pandemic, Capital Economics forecast on Wednesday in one of its gloomiest outlooks to date.

According to the U.K.-based consultancy firm, the Central Bank of Egypt is likely to tighten its grip on the Egyptian pound, “but this will not necessarily lead to a significant increase in the level of inflation,” expecting the bank to complete the chain of monetary easing.

For the Middle East and North Africa, Capital Economics forecast that the region could suffer its worst recession since 1980, saying the social divergence and travel restrictions will severely affect Egypt, Tunisia, Morocco, and Dubai.