Egypt had made solid progress towards macroeconomic stability before Covid-19 hit. Its fiscal deficit was coming down, its debt-to-GDP ratio was falling and its currency had stabilized as part of IMF-backed reforms.
But the coronavirus pandemic now threatens to undo much of the progress made over the last three years. Lockdowns, social distancing measures and flight bans have crippled the Arab world’s most populous country. Growth was initially projected at 6% for 2020 but the IMF has now revised that down to 2%; the EBRD has it at just 0.5%. (CONTINUED - 2065 WORDS)