Egypt’s economy to record 2.5% in FY 2020/21 before rebounding to 5.7%: IMF

The International Monetary Fund (IMF) has predicted that the Egyptian economy will continue its positive growth this fiscal year (FY) 2020/21, recording 2.5 percent.

However, the financial institution has decreased its projections from October’s world economic outlook (WEO), the then expected rates were at 2.8 percent

In addition The IMF expected in its recent  WEO that the Egyptian economy will rebound in FYs 2021/22 and 2025/26, to record 5.7 and 5.8 percent  growth, respectively, compared to 3.6 percent  in FY 2019/20.

The current account deficit is expected to expand to 4 percent in FY21/22 from 3.1 percent in FY19/20, the international financial institution said in a report on Tuesday.

The Fund also expected that Egypt’s average inflation rate will reach 4.8 percnt  in the current FY, compared to 5.7 percent in the last FY.

The unemployment rate is forecast to increase to 9.8 percent  in FY21/22 from 8.3 percent in FY19/20.

“The COVID-19 crisis saw an unprecedented use of unconventional monetary policy instruments among emerging market and developing economies.”

Egypt is one of the countries that launched asset purchase programmes (APP) as a means to counter market dysfunction and announced purchases of equities.