Tue, 27 Oct 2020 - 12:47 GMT
FILE - Minister of Finance Mohamed Ma'it
CAIRO – 27 October 2020: Egypt would not have succeeded in containing the repercussions of the Coronavirus crisis that won everyone's praise if it had not implemented the comprehensive economic reform program during the past years, and the continuing pace of reform, according to Minister of Finance Mohamed Maait.
Maait added Monday that the reforms have contributed to giving the Egyptian economy greater flexibility in absorbing shocks and positively dealing with internal and external challenges, and the ability to overcome them.
He stressed the continuation of the government's priorities in implementing an integrated package of structural reforms to attract more investments, so that the private sector has a greater role in the development process during the next stage. “It’s the engine of economic growth through which it is possible to create new job opportunities, maximize production capabilities and expand the export base, in a way that contributes to strengthening the macroeconomic structure and improving economic performance indicators.”
He added that there is increasing keenness from the government to create an environment conducive to investment, especially in promising sectors such as renewable energy, petroleum and petrochemicals, and transport in its integrated sense, in addition to industrial activities.
This came during his participation in two meetings via “video conference”, one with representatives of the International Monetary Fund’s Financial Policy Department, and the other with 40 American investors in the American Chamber of Commerce, within the Autumn meetings of the International Monetary Fund.
The minister pointed out that the estimates of international institutions for the performance of the Egyptian economy embody the successful Egyptian experience in economic reform, and reflect the solidity of the Egyptian economy. The World Bank report described Egypt as a "bright spot" in Africa, after foreign direct investment rose by 11 percent during the last fiscal year, compared to the 2018-2019 fiscal year.
He stressed that Egypt, according to the IMF report, is the only country that will achieve positive economic growth in the Middle East and North Africa during the current fiscal year, as a result of the economic reforms implemented by the government.
He explained that the International Monetary Fund expects a rapid recovery of the Egyptian economy in the medium term, an increase in growth rates of more than 5 percent, and a decline in the overall deficit ratio of the domestic product to 5.1 percent during the fiscal year 2022-2023 and 4.4 percent by the fiscal year 2024-2025, reflecting the ability of Egyptian financial policies on positive and effective dealing with local and international variables.
Maait also noted that according to the estimates of the International Monetary Fund as well, the state budget will achieve, despite the "Corona" pandemic, a primary surplus of 0.5 percent of GDP during the current fiscal year, rising to 2 percent during the fiscal year 2022-2023, and continuing on This approach is at a sustainable rate of 2 percent on average until 2025.