Despite the impact of coronavirus, Egypt remains on track to achieve positive economic growth in 2020. According to a recent IMF paper, it is the only country in the Middle East and North Africa region where this is the case.
In the early months of the pandemic, the government allocated $6.13bn to alleviate the effects of the pandemic, including grants for day-labourers and irregular workers and targeted cash transfers for vulnerable families.
The country has also been undergoing longer-term changes following as part of a major economic reform package introduced by the government in 2016, with the aim of stabilising the economy and giving it a significant boost by fostering private sector-driven growth.
The country’s banks appear to be beneficiaries of the favourable economic circumstances with their profitability and capital levels steadily increasing.
