Despite COVID-19: Egypt Records Highest Growth Rates in Arab Region in 2020

Egypt has been one of few economies in the Middle East and North Africa able to deliver high growth rates in 2020

That was despite the fact that the Covid19 pandemic decreased growth from the expected 5.7 percent of GDP to an actual 3.6 percent in 2019-2020 and projected 3.5 percent for the current fiscal year, according to international reports.

In the same context, the World Bank estimates that the Egyptian economy is expected to grow by 4 percent in 2021. However, its projection is based on how successful the COVID-19 vaccine rollout will be and whether the vaccine(s) are effective.

Actually, no one expected that pandemic, and no economy was able to escape its consequences. The coronavirus pandemic made 2020 one of the worst years for the global economy since the Great depression, pushing advanced economies and emerging markets alike into recession.

While it was not left unscathed, the Egyptian economy's relative resilience and limited losses from the pandemic have been praised by financial institutions and rating agencies worldwide, including the International Monetary Fund (IMF) and World Bank and rating institutions Fitch and Santander and Poor's.

Financial Regulatory Authority (FRA) Chairman Mohamed Omran said: " Indicators from the past few months are very promising and demonstrate that Egypt is on right track to economic recovery," adding that Egyptian government is aiming for a restoration of 2018 Indicators by the end of 2021 as Egypt witnessed a return of great economical stability.

“Thanks to a set of structural reforms it has been adopting since 2016, and also the Egyptians' will, the economy has realized a growth rate of 5.6 percent, the highest in the region,” he said during a press conference on Tuesday on the launch of the FRA's annual report Omran recently said economic reforms contributed to realizing an initial budget surplus of 2 percent, noting that the net hard currency reserve hit a record of more than $45 billion by the end of 2019.

He added that the Egyptian authority has also worked on developing legislations of the financial sector in addition to issuing the first guide for non-banking financial activities and establishing a centre for settling disputes of non-banking financial sectors.

Furthermore, FRA has established a sustainable development department and issued the first sustainability report by an Egyptian institution.

Before the pandemic started shuttering businesses and wreaking havoc globally with health and livelihood, Egypt’s economy was seeing the fruits of a comprehensive economic reform program backed by the International Monetary Fund (IMF) via a $12 billion loan in 2016, through the Extended Fund Facility program, according to (IMF) figures.

It's worth noting that Egypt was again rated the most attractive country for foreign direct investment in MENA and North Africa in 2021.