Ministry of Planning reveals results of Egypt's COVID Economic Recovery Index for Q3 FY 2020/21

The Ministry of Planning and Economic Development issued recently a report on the results of Egypt's COVID Economic Recovery Index during the third quarter (Q3) of the fiscal year (FY) 2020/21.


Minister of Planning and Economic Development Dr. Hala El-Said indicated that the state has implemented a set of proactive policies aimed at dealing with the economic impacts of the pandemic.


The state has adopted a clear and deliberate plan to cushion the economic repercussions on citizens, especially the groups most affected by the pandemic, El-Said added.

She indicated that Egypt has injected EGP 100 billion stimulus package to support the sectors most impacted by the pandemic.

The minister stressed that this stimulus package aimed to strike a balance between protecting the citizens and ensuring the continuation of economic activity.

"It had positive impacts, which can be seen in the economic growth and employment rates." She added.

El-Said elaborated that the Egyptian economy is on the way to recovery at rapid rates, adding that the National Program for Structural Reforms (NPSR) will increase the ability of the Egyptian economy to recover from the effects of the pandemic.

Egypt has adopted the National Program for Structural Reforms as the second phase of the economic reforms.


Dr. 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 virus, the global economy is struggling to return to normalcy.
She added that some sectors were severely affected, such as aviation and tourism, while others benefited such as the information and communication technology sector.
Masoud indicated that the ministry has created a special indicator that deals with how to return to the normal situation of the Egyptian economy.
This indicator measures the activities of the real sector and compares it to the pre-pandemic figures, to detect any convergence or difference.
Having a 100 score means that the sector is very close to pre-pandemic levels, below 100 means that the sector is underperforming, and above 100 means that the sector has outperformed its pre-pandemic results.

The report indicated that Q3 of FY 2020/21 witnessed the recovery of the Egyptian economy 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, where the recovery index recorded 116, which is the highest reading. It was followed by the natural gas and construction sectors with 110, and 107 recovery index scores respectively.
Egypt's IT services' exports increased by 13% in 2020, while the total investments into the sector increased by 35%, the report indicated.

The report showed the superior performance of Egypt's natural gas sector in 2021. 
This came as a result of Egypt's infrastructure which allowed it to become an export hub for the domestic fields and the Eastern Mediterranean in general.
This positions Egypt to contribute to securing the gas needs of the European market in the coming period, as Egypt 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.