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Egypt Economic Monitor, December 2021 : The Far-Reaching Impact of Government Digitalization (English)

The Egyptian economy continues to show resilience through the COVID-19 pandemic, due to the macroeconomic and energy sector reforms implemented in recent years, along with measures to ease monetary conditions, provide selected sectoral support and mobilize external financing. Real GDP growth and foreign income activities started recovering since Q4-FY2020/21. However, global COVID-related challenges and an uneven recovery across the world continue to restrain the rebound. Foreign reserves remain ample, but the widened current account deficit has increased financing requirements. Fiscal consolidation has helped bring down the budget deficit-to-GDP ratio. Yet, fiscal space remains constrained by the interest burden and below-potential revenue-mobilization. Egypt is expected to resume pre-pandemic growth in FY2021/22 as the COVID-situation gradually improves. Further advancement of structural reforms is critical to sustain the recovery, drive productivity growth and generate high-earning job opportunities. The Focus Chapter in this report is dedicated to the topic of government digitalization; a key priority of the country’s national structural reform program. Egypt is currently at a relatively elevated level of government digitalization, according to international indices such as the United Nations E-Government Development Index, as well as the newly constructed World Bank GovTech Maturity Index. For the recent digitalization efforts to realize their potential and further enhance governance and public service delivery, continued reforms require focus on: (1) The roll-out of ‘end-to-end’ digital solutions (whereby digital transformation occurs in every step throughout a given governmental process), ensuring the integration and inter-connectedness (inter-operability) of related government systems, (2) Complementing digital transformation with a continued simplification and streamlining of government processes. (3) Strengthening the foundations of the “Digital Economy” in Egypt is crucial to effectively leverage technologies for a more efficient government, and for large-scale uptake by individuals and businesses. This will require (3-a) Continuous investments in digital infrastructure across the country to ensure uninterrupted availability of essential digital government services and universal access to high quality internet, (3-b) Promotion of digital skills, (3-c) Incentivizing use of digital financial services, and (3-d) Ensuring an overall conducive legal and regulatory framework for the digital transformation of the economy.

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    Alnashar,Sara Bahaa Hamed, Elashmawy,Fatma Ibrahim Mohamed, Metwally,Yosra Ahmed Samy Bedair, Erian,Jala Emad Youssef, Dunand,Eric Raoul Philippe, Hussein,Maha Abdelhamid Mohamid Tawfik, Alotaibi,Fatimah Mutlaq H

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    Egypt, Arab Republic of

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    Middle East and North Africa,

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    Egypt Economic Monitor, December 2021 : The Far-Reaching Impact of Government Digitalization

  • Keywords

    export-oriented sector; small and medium enterprise; Senior Financial Management Specialist; labor force participation rate; risk-weighted asset; positive real interest rates; real exchange rate appreciation; high real interest rate; legal and regulatory framework; efficiency of tax collection; tax and customs administration; state share; international commodity price; labor force survey; international oil price; nominal exchange rate; foreign income; fiscal consolidation; price of crude; current account deficit; global economic prospect; export of goods; international supply chain; employment rate; external account; inflation rate; digital technology; external financing; digital government; foreign reserve; global energy; oil import bill; net foreign asset; labor market condition; loss of employment; food price volatility; external affairs; high energy price; international crude oil; social insurance fund; domestic price inflation; current account balance; Energy Sector Reform; gas regulatory authority; expansionary monetary policy; Public Debt Management; senior procurement specialist; combination of factor; senior education specialist; domestic price level; youth unemployment rate; form of investment; control of corruption; labor market efficiency; fiscal consolidation effort; drag on growth; access to finance; public service delivery; human capital development; public health service; removal of tax; domestic economic activity; positive spillover effect; public sector worker; public sector modernization; internet of things; modes of payment; Public Financial Management; balance of payment; external debt service; Oil and Gas; Oil & Gas; foreign debt repayment; accumulation of hydrocarbons; restrictions on trade; public investment management; public sector entity; human resource management; foreign exchange assets; real gdp; overall budget; digital service; financial service; government security; business environment; formal sector; government revenue; Social Protection; budget deficit; domestic inflation; digital transformation; government process; energy subsidies; banking system; banking sector; financial soundness; domestic credit; inflationary pressure; working-age population; portfolio inflow; unemployment decline; commercial bank; government system; sovereign debt; International Trade; vaccination process; tax revenue; real income; debt dynamic; primary balance; forbearance measure; global output; Exchange Rates; functional classification; gross value; private investment; market price; trade deficit; interest burden; inflation target; sovereign bond; baseline scenario; portfolio investment; global financial; merchandise import; foreign financing; net export; industrial producer; global trade; government service; financial inclusion; digital economy; spot price; digital infrastructure; Public Services; global demand; Tax Administration; international travel; Vocational Training; education budget; public expenditure; global economy; across border; government investment; positive growth; budget structure; investment spending; constitutional mandate; press release; import growth; real appreciation; exceptional circumstance; budget figures; cumbersome procedures; Digital Solutions; mobile device; regulatory environment; vat revenue; private consumption; tax filing; fiscal account; the administration; tax authority; tax authorities; global recovery; internet service; global growth; Tax Holiday; limited capacity; tax policy; fiscal pressure; different systems; government procedure; lost revenue; social program; enabling environment; Tax Exemption; domestic liquidity; several countries; production level; credit intermediation; liquidity condition; capacity constraint; monetary expansion; borrowing cost; credit expansion; loan scheme; target inflation; monetary authority; price indexation; informal worker; average price; Oil Refining; fuel product; real sector; other sectors; remittance channel; fiscal balance; in family



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Alnashar,Sara Bahaa Hamed Elashmawy,Fatma Ibrahim Mohamed Metwally,Yosra Ahmed Samy Bedair Erian,Jala Emad Youssef Dunand,Eric Raoul Philippe Hussein,Maha Abdelhamid Mohamid Tawfik Alotaibi,Fatimah Mutlaq H

Egypt Economic Monitor, December 2021 : The Far-Reaching Impact of Government Digitalization (English). Egypt Economic Monitor Washington, D.C. : World Bank Group.