Egypt’s Ministry of Planning and Economic Development has revealed that most sectors of the economy recovered from the novel coronavirus (COVID-19) in the third quarter (Q3) of fiscal year (FY) 2020/21.
The data was issued in a report noting the results of Egypt’s COVID-19 Economic Recovery Index during the quarter.
The ministry has created a special indicator that measures the activities of sectors to compare the results to pre-pandemic figures, in order to detect any convergence.
Having a score of 100 means that the sector is very close to pre-pandemic levels, below 100 means that the sector is underperforming. Meanwhile, a score of above 100 means that the sector has outperformed its pre-pandemic results.
The report indicated that Q3 of FY 2020/21 saw the Egyptian economy recover in most sectors, as the total recovery index recorded 102.
According to the report, some sectors helped to achieve growth with their outstanding performance, namely the telecommunications sector, which saw its recovery index record the highest reading of 116. It was followed by the natural gas and construction sectors, with recovery index scores of 110 and 107, respectively.
Egypt’s information technology (IT) service exports increased by 13% in 2020, while the total investments into the sector increased by 35%, the report indicated.
It also showed the superior performance of Egypt’s natural gas sector in 2021, which came as a result of the country’s infrastructure. This allowed it to become an export hub for domestic fields, and the Eastern Mediterranean in general.
This puts Egypt in a position to contribute to securing the gas needs of the European market in the coming period. The country is taking rapid steps towards meeting the needs arising from the expected recovery in gas demand in the markets after the decline in 2020.
The construction sector has also succeeded in achieving positive growth rates over the past four years, thus being able to protect the Egyptian economy in times of crisis. The sector provided job opportunities in all national projects such as housing, utilities, and roads, the sector witnessed growth despite the Covid-19 pandemic.
Hala El-Said, Minister of Planning and Economic Development, said that the state has implemented a set of proactive policies aimed at dealing with the economic impacts of the pandemic. She indicated that Egypt has injected an EGP 100bn stimulus package to support the sectors most impacted by the pandemic.
The minister said that the Egyptian economy is rapidly on the way to recovery, adding that the National Program for Structural Reforms will increase the ability of the Egyptian economy to recover from the effects of the pandemic. Egypt has adopted the National Program as the second phase of the economic reforms.
Nada Masoud, Economic Advisor to the Minister of Planning and Economic Development, explained that after more than a year of disruptions caused by the COVID-19 pandemic, some sectors were severely affected. Those most notably affected were aviation and tourism. Meanwhile, other sectors, such as the information and communication technology (ICT) sector, benefited.
