Finance Minister Mohamed Maait said on Sunday that the International Monetary Fund (IMF) lauded Egypt's quick response to the COVID-19 pandemic, and the measures taken to address the implications of the outbreak.
This came during a review of the IMF's report at a cabinet meeting chaired by Prime Minister Mostafa Madbouly.
In its report on the Egyptian situation, the IMF said that the impact of the COVID crisis on growth has so far been less severe than expected, as strong consumption that helped offset the drop in tourism and investment inflows, adding that the measures taken to meet health and financial needs for the sectors most affected had apparently helped mitigate the impact of the shock.
The fund emphasized that external market conditions have improved with a strong return to portfolio flows since the approval of the Standby Arrangement (SBA).
It noted that consumption remained relatively robust, yet, and it supported modest growth in other sectors.
"Consequently, the decline was much less than expected upon approval by the SBA in June, resulting in growth of 3.6% in the 2019/20 fiscal year compared to the predicted 2%," the report said.
The report indicated that the unemployment rate decreased in the third quarter of 2020 to 7.3%, accompanied by an increase in the workforce, down from 9.6% in the previous quarter at the peak of the outbreak.
It added that Egypt' primary surplus of 1.8% of GDP also exceeded expectations, reflecting savings in energy subsidies from lower oil prices and transfers to the Social Insurance Fund that were lower than planned.
The International Monetary Fund praised the various initiatives, including ones from Central Bank of Egypt (CBE), along with banks that managed to provide liquidity, and credit during the crisis.
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