Consumer spending, 2022 budget focuses, and climbing vaccination rates set the scene for accelerating growth in Egypt this year, along with foreign demand and public projects. With crucial support from public spending plans, Egypt’s recovery will accelerate through the rest of this year, but performance will vary across industries. Firms should monitor these trends for any disruptions in their sector and build scenarios into your strategic plans to ensure you are prepared for anything the remainder of 2021 may bring.

Egypt is poised for a recovery in 2021, in part due to three key economic drivers:

  • The EGP will remain stable, aiding in the domestic consumption recovery. A stable pound will support the recovery in consumer spending through improving purchasing power. Access to foreign currency will remain difficult for the private sector, however, as reserves dip due to COVID-19.
  • The fiscal year 2021–2022 budget is focused on stimulating the economy. Businesses should align with local partners on how to raise engagement with decision makers to maximize public demand and better position their value-added emphasis as public demand grows more price sensitive.
  • Vaccine localization is boosting vaccination; however, herd immunity remains far off. Vaccination rates are slowly climbing in Egypt, as the government pursues an unconventional approach of prioritizing sector-based vaccination. The biggest boost to vaccination will come from localized vaccine production. The Vacsera plant has an output capacity of 3 million doses a day, which will ramp up vaccination in Q4 2021 and 2022. Egypt will fully vaccinate its vulnerable population by the end of the year, but herd immunity remains distant.

FrontierView combines world-class strategic market intelligence and analyst advisory services through data, insights, and analytical tools, to power your business decisions. We offer a solution that puts the right information at the right time, at your fingertips. If you would like to request access to the full Egypt Market Review report, start a free trial of FrontierView. You can also download our free mobile app to stay ahead of developments and trends to enhance your performance in must-win markets. Available on iOS and Android.