The COVID-19 pandemic is interrupting Egypt’s recent economic success story and estimates suggest that the COVID-19 crisis may lead to a decline in GDP during Q4 (April-June). While these losses are lower compared to many other countries, especially to those countries that implemented full lockdowns, they are leading to substantial temporary job losses and reductions in household incomes. The level of social protection required to fully offset poor households’ income losses is likely to be prohibitive, especially given falling revenues from reduced economic activity. Therefore, continuing to gradually open the economy again will be critical for avoiding permanent job losses and increases in poverty. The re-opening of the economy and related government support to sectors may also provide new opportunities for accelerating private sector driven and sustainable economic transformation.