Egypt lowers GDP growth target for current fiscal year to 5.1%: Minister

Ayat Al Tawy , Thursday 26 Mar 2020

Egyptian ministers during a cabinet meeting held by video conference due to coronavirus fears, Thursday, March 26, 2020 (Photo: Egypt's cabinet)

Egypt has reduced its target for its gross domestic product growth in the fiscal year ending June to 5.1% from 5.6%, Planning Minister Hala El-Saeed said on Thursday, on the back of the economic slowdown caused by the coronavirus outbreak.

The move has been prompted by slowing growth in the third and fourth quarter of the current fiscal year 2019-2020, she added in a cabinet meeting held by video conference.

The country is targeting growth of 4.5% in the next fiscal year 2020-2021 which could go down to 3.5% if the coronavirus crisis continues until mid-year, the minister said.

It is targeting a 8.5% unemployment rate in the year if the crisis ends by mid-year.

Inflation is expected to climb to 9.8% if the coronavirus crisis lasts until December 2020, amid high demand on some products like medical supplies and detergents, she added, according to a cabinet statement.

Earlier on Thursday, the cabinet said it had approved a draft budget for the fiscal year 2020-2021 which is targeting a deficit of 6.3%.

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