In-Depth Analysis
Egypt
Thanks to the adoption of reforms under an ambitious IMF programme, Egypt’s macroeconomic indicators have improved notably. This has made Egypt fairly resilient to the shocks brought about by Covid-19 and should help support a strong bounce-back relative to its North African counterparts. A high level of state presence in the economy and high domestic public debt levels are some of its ongoing challenges.
Our real GDP growth projection remains at 3.9% for this year, but the lack of signs of a stronger recovery could result in a downward revision in the next forecast round. Recent measures to increase public sector compensation will put further pressure on the recurrent spending bill, but closer collaboration with the International Monetary Fund has benefited fiscal management and will continue to do so. The budget deficit is now expected to remain narrower than the 8% of GDP threshold. After a slow start to the vaccination programme, it seems that progress is now being made, but it will take some time to attain herd immunity. (Source: Egypt Annual Country Profile, published June 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-7.9 |
|
Consumer Price Index (% change y-o-y, avg) |
5.0 |
|
Current Account Balance (as a % of GDP) |
-3.7 |
|
Real GDP (annual % change) |
1.5 |
|
GDP per Capita, US$ |
3,718.4 |
|
Import Cover (months) |
5.7 |
|
Population, million |
102.3 |
| Total External Debt (as a % of GDP) |
34.9 |