Arab Republic of Egypt: Request for a 12-Month Stand-By Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt
IMF Staff Country Reports, August 10, 2020
Source details
- Canonical URL
- Arab Republic of Egypt: Request for a 12-Month Stand-By Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt
Other formats
Bibliographic details
- Authors: Arrangement-Press Release
- Published: August 10, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513553214.002
Executive summary
- Egypt’s macroeconomic stability achieved during the three-year arrangement under the Extended Fund Facility (EFF) faces a significant disruption due to the COVID-19 pandemic.
- Growth is expected to slow in both FY2019/20 and FY2020/21 as tourism has been halted and domestic activity curtailed.
- The external accounts have come under pressure due to capital outflows and the shock to tourism and remittances.
- The authorities responded with a broad package to scale up the health system’s capacity and policies to support the people and the economy.
Major findings and projections
- Macroeconomic stability gained under the three-year EFF arrangement is significantly disrupted by COVID-19.
- Growth outlook:
- Growth is expected to slow in both FY2019/20 and FY2020/21.
- External sector pressures:
- External accounts under pressure from capital outflows.
- External accounts under pressure from the shock to tourism and remittances.
- Policy response:
- Authorities implemented a broad package to scale up the health system’s capacity.
- Authorities implemented policies to support the people and the economy.
Policy recommendations and authorities’ actions
- Scale up health system capacity to respond to COVID-19.
- Implement policies that support households and firms to limit economic scarring from halted tourism and curtailed domestic activity.
- Address external account pressures arising from capital outflows, tourism shock, and remittance declines.
Content in this bundle
- Executive Summary