The Ministry of Planning and Economic Development released a study that addressed the views of several international organizations on the economic situation in Egypt under the coronavirus pandemic. According to Minister of Planning and Economic Develop...
africa, egypt, business, economy
The Ministry of Planning and Economic Development released a study that addressed the views of several international organizations on the economic situation in Egypt under the coronavirus pandemic. According to Minister of Planning and Economic Development Hala al-Saeed, several foreign reports have commended the condition of the Egyptian economy and the government's steps to combat the coronavirus. She added that these foreign organizations also expect in the near future an increase in Egypt's economic indicators.
Saeed referred to a study by Capital Economics, a leading independent economic analysis firm, which expects pressure on the Egyptian pound to ease after Egypt overcomes its highest balance of payments pressure with tourism returns and coronavirus restrictions lightening. She also noted the expectations of Fitch about the performance of Egypt in rising foreign exchange reserves in the coming years, enough to cover imports for at least six months until 2024.
It also expects the overall value of goods and services exports to hit $47.7bn in 2020 and to continue to grow to $55.3bn in 2024. The minister also highlighted discussions over the success of the Egyptian pound against the dollar by various international institutions. She clarified that the Egyptian pound is one of the best-performing emerging-market currencies against the dollar, and that economic and structural reforms have given the Egyptian pound some degree of resilience to withstand crises in recent years.
According to the ministry 's report, Capital Economics clarified that the Egyptian pound has seen a two percent increase over the dollar since July, with Egypt's central bank keeping interest rates unchanged to facilitate capital flows.
The study looked at the outlook on the Egyptian pound from some foreign institutions. Among these, The Economist predicts an increase in the output of the pound against the dollar in the coming years relative to pre-pandemic levels in 2019, when the dollar's exchange rate hit LE16.82.