FRA approves establishment of five new firms for investment fund management, SME financing    Sukari Gold Mine showcases successful public–private partnership: Minister of Petroleum    Egypt's Environment Minister attends AMCEN conference in Nairobi    Egypt considers launching national platform to mobilise green financing for private-sector industrial transformation    Egyptian, Belarusian officials discuss drug registration, market access    Egypt's ARC, Italy's AICS sign deal to boost wheat production    Gold prices edge higher on July 16th    Egypt stocks hit record highs in 2025 as reforms fuel rally: Cabinet    Egypt condemns Israeli strikes on Lebanon, Syria    Syria says it will defend its territory after Israeli strikes in Suwayda    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Egypt's Health Min. discusses drug localisation with Sandoz    Egypt, Mexico explore joint action on environment, sustainability    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Egypt's PM urges BRICS to prioritise peace    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt's GAH, Spain's Konecta discuss digital health partnership    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



IIF expects Egypt's economy to grow 2.3% in FY2020/2021
Published in Amwal Al Ghad on 14 - 02 - 2021

Egypt's economy is expected to grow 2.3 percent in the 2020/2021 financial year ending in June, The Institute of International Finance (IIF) – whose members include over 400 banks and financial institutions across the globe – said on Wednesday.
Garbis Iradian, a chief economist at the IIF, explained that Egypt's economy succeeded in weathering the coronavirus pandemic well, supported by a timely and effective public health response, deployment of a comprehensive set of fiscal and monetary measures, and adequate funding from the IMF.
"We expect growth to moderate from 3.6 percent in FY 2019/20 to 2.3 percent in FY 2020/21, supported by accommodative monetary and fiscal policies, and the progress in reforms prior to the pandemic," Iradian said in a statement.
"Egypt is the only MENA country to have avoided a contraction in 2020. Still, high-frequency indicators, including the PMI and the manufacturing and extractive index, resumed their decline in recent months." he added.
The IIF official went on saying: "The funding from the IMF allowed the authorities to swiftly implement an emergency response package that significantly increased health and other social spending and provided support to the private sector,"
"Partial lockdowns and other restrictions may have less of a detrimental economic impact in the second half of the current fiscal year, as consumers and business have found ways to adapt and capitalise on the major progress made in digital transformation and fintech,"
Egypt's central bank reduced its policy rates by 400 basis points since end-2019, and on February 4th, it kept the overnight deposit and lending rates, at 8.25 percent and 9.25 percent, respectively.
"The monetary policy stance is accommodative and there might be room for further easing in the absence of inflationary pressures. It remains consistent with the inflation target of 7 percent (±2 percent) in Q4 2022. The 12-month headline and core inflation continued falling through January 2021, reaching as low as 5.4 percent and 3.8 percent, respectively," Iradian said.
He pointed to other measures implemented include: (i) 100 billion Egyptian pounds (1.7 percent of GDP) guarantee to cover lending at preferential rates to the agricultural and manufacturing sectors; deferral of up to 50 percent of the value of monthly installments for banks' clients facing difficulties in settling their loans; and extending existing lending initiative to the tourism sector until end-2021.
"Despite limited fiscal space and high public debt, the authorities have expanded their social program, with focuses on tackling the health emergency and supporting the most vulnerable via the expansion of the Takaful and Karama cash transfer programme,"
Iradian expects the fiscal deficit would widen to 8.5 percent of GDP in the 2020/2021 year because of lower growth in tax revenues and scaled up spending. The primary balance may remain in a surplus of less than 1 percent of GDP, he added.


Clic here to read the story from its source.