INTERVIEW: Egypt’s economic reforms have strengthened the economy in the face of COVID-19, says IMF mission head

INTERVIEW: Egypt’s economic reforms have strengthened the economy in the face of COVID-19, says IMF mission head

The head of the International Monetary Fund's mission to Egypt, Uma Ramakrishnan, spoke to Ahram Online about forecasts for the Egyptian economy in light of the repercussions of the COVID-19 crisis and how the country can maintain sustainable growth and maximise economic and social gains.

Ahram Online: How is the Egyptian economy affected by the COVID-19 pandemic? How can these repercussions be reduced, with expectations if the pandemic continues?

Uma Ramakrishnan: First let me thank you for taking the time to do this interview. As in other countries, Egypt's economy is being impacted by the COVID-19 pandemic both because of necessary containment measures as well as through the sudden stop in tourism and decline in other export receipts, drop in remittances, and lower revenues from the Suez Canal. Also, at the peak of the global risk aversion during March/April, there was nearly $16 billion in capital outflows. The combination of these factors“”although partially offset by a fall in imports due to the fall in domestic demand“”have put significant pressure on the balance of payments. For all these reasons, coupled with the global recession, With the global economy in a recession and domestic activity curtailed by necessary measures to contain the