Egypt’s real GDP is expected to significantly grow to 5.2 percent in the financial year 2021/2022, said the International Monetary Fund’s (IMF) mission chief for Egypt on the stand-by agreement programme Celin Allard.
The figure is much higher from the projected 2.8 percent for the current 2020/2021 year.
Allard made her remarks during a press briefing held virtually on the occasion of the completion of Egypt’s 12-month SBA loan programme.
The IMF official stressed that Egypt needs to continue setting a balance between maintaining its recovery efforts and preserving its financial stability.
“Egypt was one of the few countries that experienced positive economic growth in 2020. The IMF expects its economy to grow by 2.8% in FY2020/21 and by 5.2% in FY2021/22. Together with Egypt’s quick pandemic response, the IMF’s support has helped maintain economic stability.” IMF said in a tweet.
Regarding whether Egypt is in talks with the IMF to secure more loans going forward, Allard told Ahram Online that the government will decide if it needs to engage in future loan programmes with the IMF. The Fund will remain closely engaged with the Egyptian authorities and continue supporting the country’s reform agenda, she added.
Allard further said that the IMF is continuing its technical support programmes with Egypt and is sharing policy advice.
She also noted that the country has to reduce the role of the state in the economy and unleash the private sector’s hand to play a greater role in Egypt’s economy.
On Egypt’s external debt, Allard lauded the government’s medium‑term revenue strategy and its medium-term debt strategy as key instruments for reducing the high public debt and gross financing needs while creating space for priority spending.
The IMF official also said that there are no further measures that need to be done by Egypt with regards to the SBA programme.
However, Allard stressed that “Egypt needs to take a number of measures for its growth going forward, including strengthening social protection and better integrating in global trade so as to support and increase its exports.”
On Wednesday, the IMF’s executive board announced the completion of the second and final review of Egypt’s economic reform programme under the SBA, allowing the country to receive about $1.7 billion, the third tranche of the loan.
By getting the third tranche, Egypt will have received a total of $5.4 billion.
