Egypt's GDP grows despite pandemic

CAIRO, Nov 08 (Arab News): Despite the pandemic and tourism collapse, Egypt is projecting healthy economic growth this year, even as one third of the Arab world's most populous country remains mired in poverty.

Critics question, however, how much of the GDP growth is driven by ostentatious mega-projects, such as a new administrative capital being built in the desert, financed by ballooning debt that will have to be repaid.

The International Monetary Fund in September predicted economic growth of 3.6 per cent for 2020. Although lower than earlier forecasts, this still makes Egypt the only North African economy set to expand this year.

At the same time, almost one third of Egypt's more than 100 million people live below the poverty line, defined as surviving on less than $2.0 a day, according to the most recent data, for 2017-18. Egypt's government initially predicted six per cent GDP growth for the fiscal year 2020, which ran from early July 2019 to the end of June 2020.