The World Bank raises its forecast for the growth of the Egyptian economy to 5.5%

Prime Minister Mostafa Madbouly reviewed the “Global Economic Prospects” report issued by the World Bank, which highlighted a number of positive indicators regarding the Egyptian economy, noting that it witnessed a faster growth than expected during the fiscal year 2020/2021, thanks to strong consumption. The increase in remittances from Egyptians working abroad, in addition to containing inflationary pressures, and then the World Bank raised its expectations for the growth of the Egyptian economy by (1%) to reach (5.5%) during the fiscal year 2021/22; This is in light of the improvement in external demand from the main trading partners, in addition to the expansion in the information and communications technology and gas extraction sectors, and the improvement in the performance of the tourism sector..

The Prime Minister stressed the keenness to monitor economic indicators and expectations through the reports of international institutions, as it is a realistic mirror to assess the steps and policies taken, pointing out that the positive development reflected in international reports in the indicators of the Egyptian economy, enhances confidence in the path followed by the Egyptian state, and pushes it towards Continuing to strive to achieve greater results in a manner that reflects positively on the economy and the future of citizens.

At the global level, the report issued by the World Bank indicated that the global growth rate is expected to decline to (4.1%) in 2022 and (3.2%) in 2023, in light of the termination of support measures at the level of public financial and monetary policies, and from The advanced economies are expected to achieve a growth rate of about (5%) in 2021, (3.8%) in 2022 and about (2.3%) in 2023, which is a sufficient pace to restore output and investment to the levels that prevailed before the outbreak of the pandemic in these economies. Emerging market and developing economies are expected to achieve a growth rate of about 6.3% in 2021, about 4.6% in 2022, and 4.4% in 2023.

The “Global Economic Prospects” report added that the coronavirus pandemic has raised total global debt to its highest level in half a century, and increased global disparities in income levels, as well as inequality in some other areas, including: access to vaccines. Health care services, economic growth, etc.

The report added that the rapid spread of the “Omicron” mutant indicates that the pandemic will likely continue to disrupt economic activities in the short term, and global developments in the macroeconomic level and factors related to the supply of primary commodities are likely to lead to the continuation of the cycles of ups and downs in commodity markets. It is also expected that inflation rates will continue to rise during the current year to remain higher than their levels before the outbreak of the pandemic, provided that inflation will witness a gradual decline during the second half of the year..

The report dealt with a number of World Bank expectations for the economies of the Middle East and North Africa, as it confirmed that the region witnessed a strong economic recovery during the second half of 2021, bringing some economies back to pre-pandemic levels, noting that the growth rate in the region is expected to accelerate to reach To (4.4%) in 2022, to decline to (3.4%) in 2023, and the gap in average per capita income between the economies of the region and the advanced economies is expected to widen..

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