World Bank: Egypt's Economy to Growth by 5.5% in 2023

The World Bank said on Tuesday that the Egyptian economy is expected to rise during 2022 and 2023 to 4.5% and 5.5%, respectively.

According to the World Bank "Global Economic Prospects" report, the Egyptian government has adopted more reform steps during 2021 in order to address the repercussions of the pandemic.

The report pointed out that Egypt raised the minimum wage for public sector employees since July, extended the suspension of fees imposed on most financial transactions for an additional six months starting 2021, and took further measures to boost lending.

The International Monetary Fund (IMF) completed the second and final review of the 12-month stand-by agreement (SBA) amounting to $5.2 billion.

The Fund said that the Egyptian economy demonstrated its resilience during the pandemic, through a rapid and balanced response at the policy level, including its request for a financing package through the Rapid Financing Instrument (RFI) and “Credit Standby Agreement” at a value of Almost $8 billion.

The IMF explained that the strong performance and commitment of the Egyptian authorities over the past twelve months helped maintain macroeconomic stability, while providing the necessary social and health spending, in addition to implementing basic structural reforms.

For oil importers in the region, including Egypt, the pandemic is expected to remain a drag on their economic growth.

Citing Egypt, the report noted that the country’s forecasts in FY2020/21 reflect retreat in tourism, manufacturing, and oil and gas extraction due to the pandemic, before strengthening again in FY 2021/22.

The report indicated that the Egypt's expectations during the FY2020/2021 reflect the decline in tourism, manufacturing, oil and gas extraction due to the pandemic, before strengthening again in FY2021/22.