World Bank: Egypt’s real GDP to grow 5.5% in FY 2022/23

Egypt’s real gross domestic product (GDP) will grow 4.5 percent in the financial year 2021/2022 – down from projections in October – and then the economy will boom 5.5 percent in the 2022/2023, the World Bank said on Tuesday.

According to the World Bank’s Global Economic Prospects, the Egyptian government has taken further policy steps in 2021 to address the effects of the pandemic.

“The minimum wage for public sector workers was increased by 20 percent (starting July), charges on most financial transactions were cancelled for an additional six months from the start of 2021, and further measures were undertaken to encourage lending.”

However, the rise of the number of COVID-19 cases in early 2021 contributed to clouding economic activity, the World Bank reported added.

The country’s economic growth is forecast to slow to 2.3 percent in the 2020/2021.

“The slower growth expected this year reflects damage to tourism, manufacturing, and oil and gas extractives from the pandemic and the lingering impact of a decline in domestic demand, notably from a collapse in fixed investment.”

“In Egypt, growth, having been solid in fiscal year 2019/20, is expected to slow to 2.3 percent in 2020/21, starting July, before strengthening again in 2021/22.” the report read.