The Minister of Planning and Economic Development reviews the Egyptian recovery index for the fourth quarter of FY 20/21

The rise in the recovery index is evidence of the strength of the Egyptian economy: Says Hala El-Said

H.E. Dr. Hala El-Said, Egypt’s Minister of Planning and Economic Development received a report from the macroeconomic unit at the ministry on the Egyptian recovery index for the fourth quarter of the fiscal year 20/2021. The report indicated that the index rose by three points to 106 points, up from 103 points in the previous quarter of the same year, which indicates the continued recovery of the Egyptian economy.The report stressed that Egypt was able to overcome the negative effects of the Corona pandemic as a result of the improvement in key economic indicators such as the stability of public financial conditions, the presence of large and reassuring international reserves, as well as the government’s continued implementation of financial and economic reform and structural reforms.The report found that the telecommunications sector topped the recovery index, recording 131 points, followed by the Suez Canal recovery index, where this year witnessed the full recovery of the Suez Canal, recording 115 points, after the increase in demand globally and the recovery of trade again, followed by the general government sector recovery index, recording 111 points, health 111 points, education 109 points.On the government consumption index, the report indicated that government expenditures provided support to the Egyptian economy during the outbreak of the Corona epidemic, as it was the fastest-growing factor since the fourth quarter of the fiscal year 2019-20, and scored 114 points during the height of the slowdown of all economies globally.


 The report indicated that successive readings showed lower government spending, but they still recorded the highest readings on the demand side of the recovery indicator, as they reached 116 points by the fourth quarter of 2020/21.Moreover, the report also mentioned that the strong performance of private consumption continued to rise, affected by government policies implemented to support affected companies and individuals, in addition to the increase in the flow of remittances from Egyptians working abroad as well as low inflationary pressures and an expansionary monetary policy, which contributed to supporting the purchasing power of families.The report pointed out that the recovery index for private consumption scored 113 points during the fourth quarter of the fiscal year 20/2021.The Minister of Planning and Economic Development confirmed that the Egyptian state is working on a balanced plan to recover from the effects of the pandemic.She noted that what the report monitors confirm the ability of the Egyptian economy to achieve rapid recovery and growth during the coming period.It is noteworthy that the recovery index for the transportation and storage sector recorded 107 points, the recovery index for the water, sewage, and recycling sector also recorded 107 points and 106 points for each of the banking sector, wholesale and retail trade, information, social insurance, and insurance.Meanwhile, the recovery index for the activities real estate sector, agriculture, forestry, and fishing recorded 105 each, and the electricity sector recovery index scored 104 points. The construction and building sector and gas extraction in the recovery index, during the fourth quarter of the fiscal year 20/2021, scored 102 points. The index readings also showed the insolvency of some sectors that have not yet recovered, such as the oil extraction, restaurants and hotels, and oil refining sectors. The demand side recovery index showed the impact of other sectors, such as the exports and imports sector, and investments; however, the net foreign investment flows index showed a noticeable increase in the fourth quarter of 20/2021.