Egypt: Reform anchor pays off
While the COVID-19 pandemic has not passed Egypt by, the country has managed to weather the storm relatively well. Egypt is set to be the only country in MENA to see its GDP remain in the positive territory at 3.5% growth. This week, we analyse the repercussions of the pandemic on the state budget and overall fiscal position, focusing on:
- The role of the current macro-management framework of the CBE and the potential additional USD 1.6B support package from the IMF.
- How Egypt looks set to avoid a U-shaped recovery, although achieving growth high enough to chip at unemployment could take a few more years of commitment to reform.
- The acceleration in Chinese transport infrastructure and construction projects in Egypt under the Belt and Road Initiative despite the ripple effect of the pandemic on Sino-MENA trade and investments.
Florence Eid-Oakden, Ph.D, Chief Economist
Ghalia Al Bajali, Norah Song, Analysts
The Country Views series shines the spotlight on specific developments in MENA countries, analysing them from a local perspective to deliver forward looking views for businesses and investors.
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