The government has revised downward its target GDP growth for FY2020-2021 to 3.5% from 4.5%, said Planning Minister Hala El Said, according to a cabinet statement. Projections for the current fiscal year have also been amended to 4.2%, down from 5.1% as the pandemic continues to weigh on the economy. The revised figures assume the worst will be over by June, but will be slashed another 30% if the crisis continues past that point, El Said noted.

Background: The Finance Ministry had said last week it would leave its projections for FY2020-2021 GDP growth unchanged from the assumptions it made when preparing the state budget before the covid-19 outbreak. According to the draft budget released at the time, the ministry said it would revisit the anticipated growth figures once the economic impact of the pandemic becomes clearer.