Egypt: Economic growth slows in January–March
May 30, 2020
The economy expanded 5.0% year-on-year in the third quarter of FY 2020 (January–March 2020), according to estimates announced by the Ministry of Planning and Development on 30 May. This latest print is down from the 5.6% growth recorded in the second quarter, and reflects only the earliest effects of the containment measures the Egyptian authorities began imposing in March to reduce the spread of coronavirus.
Comprehensive GDP details are not yet available for the latest quarter, although the government reported that the tourism, manufacturing, and wholesale and retail trade sectors all suffered. Petroleum refining, communications and construction sectors propped up growth, however.
Going forward, forecasts from both the government and FocusEconomics Consensus Forecast panelists point to a clear economic deterioration from April due to the coronavirus containment measures. However, fiscal and monetary policy stimulus should moderate the downturn.
Author: Edward Gardner, Economist