IMF: Egypt’s Gross Domestic Product to Rebound in FY 2020/21 Following a FY2019/20 Decline

The International Monetary Fund (IMF) has lowered its FY2019/20 forecast for Egypt’s gross domestic product (GDP) to 2.0% from its previous expectation of 5.5%. This is led by the negative impacts of COVID-19 and reflects the sharp slowdown in tourism and supporting industries; align with other key sectors like manufacturing, trade and real estate.

The IMF expects a rebound in the next fiscal cycle, projecting GDP growth at 6.5% in FY 2020/21, with this increasing to 5.3% in the following two fiscal periods. The recovery in FY 2020/21 is based on macroeconomic stability as domestic economic activity starts to normalise.

According to the IMF, Egypt would also need to make progr...