The IMF expects Egypt to lead growth rates in the region by 5.7% ... next year

The International Monetary Fund expects that India will achieve a major growth spurt by the end of 2021, despite the Corona pandemic, as it is expected to achieve 12.5% ​​growth to top the Asian markets, and it also expects Egyptian growth 2022/2021 to reach 5.7%, compared to 5.5%, In its report issued last January, an increase of 0.2 percentage points, and the Fund also expected the country's growth rate to accelerate to 5.8% in the 2026/2025 fiscal year.

The IMF report revealed that the global economy is on more stable feet, but with diverging recovery paths and high uncertainty, as global prospects are still surrounded by a great deal of uncertainty a year after the start of the pandemic.

On Egypt, the IMF report expected a decline in the current account deficit to 2.5% in 2026/2025, compared to 3.1% in 2019/2020, in addition to a significant decline in the unemployment rate in 2022.

 The report considered that the asset purchase program that the Egyptian government targeted to buy stocks showed its effectiveness during the period of the "emerging corona" virus, as it contributed to sparing companies from the rise in interest rates resulting from high returns from the availability of liquidity in the financing markets, as praised by the International Monetary Fund in February. The past, with the successes achieved by the Egyptian economic reform program, enabled Egypt to confront the effects of the Corona pandemic.

Of concern, the emergence of new mutated virus strains and the accumulation of human losses as a result of the pandemic, at a time when vaccination coverage increases, and sends a sense of optimism.

There is a divergence in the paths of economic recovery between countries and sectors, reflecting the disparity in the disruptions caused by the pandemic and the extent of policy support to address them. The outlook does not depend only on the outcome of the battle between the virus and vaccines - it also depends on the ability of economic policies implemented in light of a high degree of uncertainty to effectively limit the lasting damage resulting from this unprecedented crisis.

Global growth is expected to reach 6% in 2021, and then decline to 4.4% in 2022.

Note that the forecasts for 2021 and 2022 are stronger than those reported in the October 2020 WEO. This raising of expectations is due to additional financial support in a few large economies, the expected recovery thanks to vaccines in the second half of 2021, and the continued adaptation of economic activity to the requirements of limited mobility.

According to the report, the United States of America is expected to achieve a growth rate of 6.4%, while Spain will achieve the same rate, which is the highest in Europe.

China will achieve 8.4% and Russia 3.8%, while the Fund expects Saudi Arabia to achieve 2.9% and South Africa 3.1%.