Egypt Watch

Capital Economics: Egypt’s economy shrinks 1.3% in 2020

Capital Economics predicts that the Egyptian economy will shrink 1.3% this fiscal year due to the coronavirus outbreak, while it expects the growth rate to rise to 7.8 per cent next fiscal year. It expected that the growth rate of Egypt’s GDP reached 6 per cent this year before the outbreak of the coronavirus. Capital Economics indicated that the precautionary measures taken by the governments of the Middle East and North Africa in the past two weeks to control the outbreak of the coronavirus will produce widespread economic damage and they will record the worst performance since the early eighties.

The corona crisis will affect the Egyptian economy and will cause a decline in gross domestic product and a disruption of the tourism sector, a decrease in exports and remittances of Egyptians abroad and Suez Canal revenue. Egypt has confirmed 495 cases of coronavirus, including 24 deaths.