Analysis: Deutsche Bank: Is Egypt the New Darling of Emerging Markets?
The Egyptian economy is among the very few emerging markets (EMs) that is growing, and would continue to grow next year despite the novel coronavirus (COVID-19) pandemic shock, according to a new report released by Deutsche Bank.
Growing but below potential
Egypt’s economic growth is going to be significantly below potential, estimated at 3.4% in fiscal year (FY) 2019/20, with a slow recovery going forward that is expected to bring growth up to 3.5% in FY 2020/21.
While the break on economic growth has come from lockdown measures, the halt in the tourism activity, and weak household consumption, growth is being supported by several factors. These include public spending, large public construction projects, a boom in the telecommunications and energy sectors, and improvements in net exports.
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