Egypt Paving the Way for a Prosperous Future in Post Covid-19 Era

Arab Republic of Egypt The Cabinet FROM LOCKDOWN TO RESET: EGYPT PAVING THE WAY FOR A PROSPEROUS FUTURE IN POST COVID-19 ERA April 2021 7KH(J\SWLDQ&DELQHW·V,QIRUPDWLRQDQG'HFLVLRQ6XSSRUW&HQWHU ,'6& is the leading Egyptian governmental think tank, which is entitled with the responsibility of conducting high quality policy research through utilizing and disseminating information to support the decision-making process in Egypt. ,'6&KDVDGLYHUVLÀHGZRUNLQJDJHQGDZKLFKWDFNOHVVHYHUDOHFRQRPLF social and political issues related to the development process. ,'6&UHOLHVRQKLJKO\TXDOLÀHGVWDIIDQGH[SHUWVZLWKGLVWLQJXLVKHG academic backgrounds who are able – at the same time – to creatively think ahead for realizing prosperity nation-wide. www www.idsc.gov.eg In February 2020, COVID-19 presented a decreased to about 29.7%, compared to cash. Finally, we expanded "Takaful and Karama" global health challenge would leave no nearly 32.5% during FY 2017/2018. social protection program to reach a total of 3.6 society unaffected. In response, we were PLOOLRQEHQHÀFLDULHVZRPHQZHUHRXUPDLQWDUJHW very keen on acting immediately to prepare, At the monetary level, we succeeded in UHSUHVHQWLQJRIWKHSURJUDP·VEHQHÀFLDULHV respond, and recover from a EULQJLQJ GRZQ WKH LQÁDWLRQ UDWH WR D UHFRUG To continue on its path for economic prosperity, multi-dimensional health and economic crisis level 5.7% during FY 2019/2020 despite the we decided to implement the second wave of caused by the pandemic. It was an COVID-19 crisis, owing to controlling food reforms of the structural adjustment program in unprecedented global shock, involving prices. This was considered the largest partnership with the International Monetary Fund simultaneous disruptions to both supply and DQQXDO GHFOLQH LQ WKH LQÁDWLRQ UDWH LQ (IMF), which is mainly based on 6 pillars including: demand in an interconnected world emerging markets in FY 2019/2020. The economy. Balance of Payments had started achieving Enhancing the business environment and surpluses once again, as net international enforcing the role of the private sector reserves increased to USD 40.1 billion by the Restructuring the Egyptian economy and As a matter of fact, the COVID-19 pandemic end of January 2021, compared to USD 16.5 focusing on the leading economic sectors has imposed great challenges all over the billion by the end of December 2015. The net 5DLVLQJ WKH HIÀFLHQF\ RI WKH ODERU PDUNHW DQG globe. It interrupted a period of foreign reserves also exceeded USD 45 enhancing technological training macroeconomic stability, high growth rates, billion in February 2020. The current account (QKDQFLQJWKHHIÀFLHQF\RIKXPDQFDSLWDO DQGLPSURYHGÀVFDODFFRXQWVLQ(J\SWZKHUH GHÀFLWDVDSHUFHQWDJHRIWKH*'3GHFOLQHG 3URPRWLQJÀQDQFLDOLQFOXVLRQ DFFHVVWRÀQDQFH many international institutions praised Egypt to 3.1% during FY 2019/2020 compared to ,QFUHDVLQJ WKH (IÀFLHQF\ RI SXEOLF LQVWLWXWLRQV for being one of the best performing 3.6% during FY 2018/2019 and 5.9% during and governance. economies in the MENA region. Amidst the FY 2015/2016. challenges, this trend of stability persisted The repercussions of the pandemic as it unfolds, during the pandemic. On the same regard, the Egyptian banking will permanently reshape our world. Although the sector has been praised by numerous crises' aftermath is amplifying old challenges and In this regard, we have created a high international institutions for its performance introducing new ones, reform on this scale often commission to manage our policies in during the crisis. Banking deposits increased opens up new opportunities for managing response to COVID-19. We also facilitated a by nearly 17.4% during FY 2019/2020 to structural problems and better rebuilding, thus, dialogue among our Cabinet, the private (*3 WULOOLRQ FRPSDUHG WR WKH SUHYLRXV WKH *R( KDV EHHQ H[HUWLQJ H[WHQVLYH HIIRUWV WR sector, think tanks, and research institutions year, despite the disruptive repercussions of rebuild a better future for its people, a future that to map out the impacts of the pandemic and the pandemic. In addition, the household can persist in the new era of COVID-19, and formulate a response plan. VHFWRU·V GHSRVLWV UHSUHVHQW QHDUO\ RI HQVXUHV (J\SW·V GLVWLQJXLVKHG VWDWXV LQ WKH QHZ total deposits, which indicates the success of world. Putting our people at the core of the 7KDQNV WR DGRSWLQJ FRKHUHQW ÀVFDO DQG the efforts of the Central Bank of Egypt (CBE) UHEXLOGLQJ WKH SURFHVV LV WKH *R(·V WRS SULRULW\ monetary policies, the Egyptian economy in eliminating the black market. investing in the well being of the Egyptian citizens has proven its resilience to the pandemic is our key to moving forward, towards a more shocks. Therefore, the economy could hold Stemming from its strong belief that primary prosperous, resilient and cohesive Egypt. up; the country could avoid a full lockdown. healthcare is an essential human right, a new This helped mitigate the anticipated negative phase of comprehensive health coverage is impact of the crisis on the economy by being rolled out for all Egyptians. In increasing the aggregate demand while November 2019, President Abdel Fattah PDLQWDLQLQJ WKH VWDELOLW\ RI WKH ÀQDQFLDO El-Sisi's mandate included launching the system. Universal Health Insurance (UHI) system. It FRYHUHGDWLWVÀUVWVWDJHPLOOLRQFLWL]HQV As for the real economic sector, we managed Egypt is currently working with the World to achieve a positive real growth rate of 3.6% Bank on a project worth USD 400 million to during FY 2019/2020 despite the unmatched avail universal healthcare coverage and distortions of COVID-19. The unemployment improve its outcome. The mandate covered rate was also reduced to 7.2 % in the fourth supporting Egyptian women's health; almost quarter of 2020, compared to 12.7% before 10.3 million women have been examined implementing the structural adjustment since 2019. program. Besides, the poverty rate At the social level, less fortunate groups and witnessed a remarkable decline during FY governorates were also well targeted. Around IRUWKHÀUVWWLPHLQ\HDUVDVLW EHQHÀFLDULHV UHFHLYHG (*3 LQ In February 2020, COVID-19 presented a decreased to about 29.7%, compared to cash. Finally, we expanded "Takaful and Karama" global health challenge would leave no nearly 32.5% during FY 2017/2018. social protection program to reach a total of 3.6 society unaffected. In response, we were PLOOLRQEHQHÀFLDULHVZRPHQZHUHRXUPDLQWDUJHW very keen on acting immediately to prepare, At the monetary level, we succeeded in UHSUHVHQWLQJRIWKHSURJUDP·VEHQHÀFLDULHV respond, and recover from a EULQJLQJ GRZQ WKH LQÁDWLRQ UDWH WR D UHFRUG To continue on its path for economic prosperity, multi-dimensional health and economic crisis level 5.7% during FY 2019/2020 despite the we decided to implement the second wave of caused by the pandemic. It was an COVID-19 crisis, owing to controlling food reforms of the structural adjustment program in unprecedented global shock, involving prices. This was considered the largest partnership with the International Monetary Fund simultaneous disruptions to both supply and DQQXDO GHFOLQH LQ WKH LQÁDWLRQ UDWH LQ (IMF), which is mainly based on 6 pillars including: demand in an interconnected world emerging markets in FY 2019/2020. The economy. Balance of Payments had started achieving Enhancing the business environment and surpluses once again, as net international enforcing the role of the private sector reserves increased to USD 40.1 billion by the Restructuring the Egyptian economy and As a matter of fact, the COVID-19 pandemic end of January 2021, compared to USD 16.5 focusing on the leading economic sectors has imposed great challenges all over the billion by the end of December 2015. The net 5DLVLQJ WKH HIÀFLHQF\ RI WKH ODERU PDUNHW DQG globe. It interrupted a period of foreign reserves also exceeded USD 45 enhancing technological training macroeconomic stability, high growth rates, billion in February 2020. The current account (QKDQFLQJWKHHIÀFLHQF\RIKXPDQFDSLWDO DQGLPSURYHGÀVFDODFFRXQWVLQ(J\SWZKHUH GHÀFLWDVDSHUFHQWDJHRIWKH*'3GHFOLQHG 3URPRWLQJÀQDQFLDOLQFOXVLRQ DFFHVVWRÀQDQFH many international institutions praised Egypt to 3.1% during FY 2019/2020 compared to ,QFUHDVLQJ WKH (IÀFLHQF\ RI SXEOLF LQVWLWXWLRQV for being one of the best performing 3.6% during FY 2018/2019 and 5.9% during and governance. economies in the MENA region. Amidst the FY 2015/2016. challenges, this trend of stability persisted The repercussions of the pandemic as it unfolds, during the pandemic. On the same regard, the Egyptian banking will permanently reshape our world. Although the sector has been praised by numerous crises' aftermath is amplifying old challenges and In this regard, we have created a high international institutions for its performance introducing new ones, reform on this scale often commission to manage our policies in during the crisis. Banking deposits increased opens up new opportunities for managing response to COVID-19. We also facilitated a by nearly 17.4% during FY 2019/2020 to structural problems and better rebuilding, thus, dialogue among our Cabinet, the private (*3 WULOOLRQ FRPSDUHG WR WKH SUHYLRXV WKH *R( KDV EHHQ H[HUWLQJ H[WHQVLYH HIIRUWV WR sector, think tanks, and research institutions year, despite the disruptive repercussions of rebuild a better future for its people, a future that to map out the impacts of the pandemic and the pandemic. In addition, the household can persist in the new era of COVID-19, and formulate a response plan. VHFWRU·V GHSRVLWV UHSUHVHQW QHDUO\ RI HQVXUHV (J\SW·V GLVWLQJXLVKHG

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