FILE PHOTO: Finance Minister Mohamed Maait speaks during a news conference in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany/File Photo
CAIRO - 9 March 2022: Egypt’s general budget is able to withstand shocks, as it did in the Coronavirus crisis, according to the Minister of Finance, Mohamed Maait.
Maait added, during a press conference for the Prime Minister,, Wednesday, to check on the availability of basic commodities during Ramadan and the repercussions of the Russian-Ukrainian crisis, that Egypt’s President Abdel fatah El-Sisi ordered to increase the reserves by 50% to be $170 billion; The wheat item has increased by 15% due to the crisis, and all our needs are available.
“Egypt achieved growth rates that exceeded all expectations,” he added, stressing that the targeted growth rates and more will be achieved, and we expect to see an improvement in the debt ratio and a primary surplus.
Prime Minister Mostafa Madbouli stated that the Ukrainian crisis has cast a shadow over all countries of the world in light of the high rates of inflation.
Madbouli added in a press conference, Wednesday, that until this moment, only 14 days after the Russian-Ukrainian crisis, global losses were estimated at $400 billion, and institutions that were expecting recovery after the Corona crisis began to speak in a pessimistic tone.
The Primer added that all international financial institutions are talking about significant impacts on the global economy due to the Ukrainian crisis.
“Wheat prices have increased 48 percent and oil prices have risen 55 percent since the Ukrainian crisis,” Madbouli pointed out.
He stated that the percentage of wheat cultivation this year amounted to 3.6 million feddans, compared to 3.2 million feddans last year, with an increase of 400,000 feddans.
Madbouli pointed out that the next two years will witness the entry of more than 1.5 million feddans of wheat, to secure self-needs.
“35 percent of Egypt's inflation rate occurs for reasons related to external factors, Madbouli added.
The Prime minister stated that we [the government] are trying to take into account the social dimension and spare citizens a large part of the effects of global inflation,” Madbouli noted.
He noted that the increase in the prices of basic commodities in Egypt is significantly less than its counterparts in the countries of the world.
The Egyptian government always strives to provide a reserve balance of 3 to 6 months of basic commodities, Madbouli stated.
He said that there is no reason for citizens to stock up on food commodities, adding that there will be no crisis related to the provision of food commodities until the end of this year.