Egypt’s growth is expected to hit 2.7 percent in FY2020/2021, and 5 percent in FY2021/2022, according to Mahmoud Mohieldin, the executive director for the Arab Republic of Egypt at the International Monetary Fund (IMF) and the UN special envoy on Financing 2030 Sustainable Development.
Mohieldin made his comments during a virtual discussion panel held by the Egyptian Junior Business Association (EJB).
He added that Egypt was one of the few countries that achieved positive growth rates, which were driven by economic reforms at the end of 2019.
The IMF executive director called for the use of smart and green concepts across the economy, as well as lauding government initiatives, such as the Decent Life mega-project to develop rural villages.
The private sector should also cooperate with the state to increase exports, sustainability, and digital transformation, according to Mohieldin.
He also said that economic policies should be flexible, mobilise labour towards growing sectors and expand social safety nets.
Mohieldin asserted the necessity of enhancing economic cooperation with Arab and African countries, as Egypt could be an important centre in supply chains and attract huge investments.
“Before the coronavirus crisis, concerns were rising about the decline of the global growth rates due to various factors, including global debts and fears of climate change. The future of the world’s economies is related to vaccination campaigns,” Mohieldin added.
He also pointed to the IMF and the World Health Organisation (WHO) experts’ remarks about the importance of vaccinating 40 percent of the population of each country by the end of 2021, and 60 percent by 2022.
Mohieldin said that the US’ growth rate is projected to reach six percent by the end of 2021, with an increase over the following two years, while China’s growth rate is expected to hit eight percent, and Europe’s growth is projected at three to four percent.
Moreover, emerging markets’ growth is expected to be at 4.3 percent in 2021, according to Mohieldin.
In the Middle East, Mohieldin said that the region lost 5 percent of its growth rate because of the pandemic and it would achieve a positive growth rate by 1 percent in 2021 and 3 percent in two years.
In Africa, Mohieldin stressed that investing in Africa should be based on the full awareness of African markets’ cultures and marketing capabilities, the availability of partners who are familiar with the African market, pointing to the diversity of sectors in Africa, including education, healthcare, tourism, infrastructure, and mining. He affirmed the importance of communicating with the association’s counterparts in Africa and exchanging visits.