Egypt records 3.8% economic growth for FY2019-2020
The economy grew 3.8% in the state fiscal year that ended on 30 June, despite fallout from the covid-19 pandemic, according to preliminary figures published by Ittihadiya on Saturday. The figures, discussed during a meeting between President Abdel Fattah El Sisi and senior ministers at the weekend, surpass government forecasts last month that predicted 3.54% growth over the past 12 months — but fall short of the 6% pre-covid target.
No signs of fiscal slippage — yet: Despite a significant increase in spending, the coronavirus is yet to throw the government’s fiscal targets wildly off course. The 7.2% budget deficit target was missed but it still decreased for the third year running to reach 7.8% of GDP from 8.2% in FY2018-2019. Meanwhile, the government succeeded in beating its 89% debt-to-GDP target, bringing it down instead to 86.1% during the fiscal year from 90.4%in FY2018-2019.