Fitch Solutions says Egyptian economy will finish the year having grown 3.5%

Egypt’s real GDP growth is projected to record 3.5 percent by end of 2020, up from 3.4 percent expected in the September, according to Fitch Solutions, a provider of credit and macro intelligence.

The International Monetary Fund has recently revised upwards its 2020 growth projections to 3.5 percent from the 2 percent it forecast in June as well as Deutsche Bank  that has expected a 3.5 percent growth spanning FY2020-2021.

Fitch Solutions says Egypt’s interest rate is projected interest rate to stand at 9.75 percent.

Average inflation rate is expected to reach 5.9 percent by the end of 2020, up from the current level of 3.3 percent announced in October, according to Fitch Solutions.

The EGP may dip against the USD: Fitch also predicts the EGP will come under a bit of pressure to hit EGP 16.25 against the greenback by the end of the year, amounting to a 3.9% slide from the current 15.64 EGP-USD rate.

In September, Fitch Solutions projected Egypt’s growth at 3.4 percent during the current fiscal year (FY) 2020/2021 despite vulnerabilities.

It said that weak prospects for tourism, investment, and remittance inflows will continue to dampen Egypt’s growth performance, Fitch added.

Recently, Egypt has witnessed an upgrade in its economic growth forecasts in international institutions’ outlook reports, including the International Monetary Fund (IMF) updated outlook report, which projected Egypt’s real GDP to reach 3.5 percent in 2020, making it the only country in MENA to witness a positive growth amid the ongoing COVID-19 crisis.