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Finance Minister: Egypt adopted expansionary economic policies during the Corona crisis


Dr. Mohamed Maait, Minister of Finance, confirmed that Egypt adopted expansionary economic policies during the Coronavirus pandemic. To achieve comprehensive and sustainable development, provide a decent life for citizens, improve their standard of living, and improve the services provided to them; In a way that contributes to preserving the economic gains achieved through the elaborate implementation of the economic reform program, and preserving the safe economic path of the country.

 

The minister referred to the unprecedented development movement pursued by the political leadership, in various walks of life, to maximize domestic and foreign investments, create direct and indirect job opportunities, localize advanced industries in Egypt, double our production capabilities, expand the export base, and enhance our competitive strength in global markets. In a way that contributes to the diversification of the structure of growth, and gives the Egyptian economy a great deal of resilience in dealing with internal and external crises, and mitigating shocks.

 

The minister said that the Egyptian economy, according to the report of the International Monetary Fund, continued to outperform many economies in the region; To rise to the second place among the largest economies in the Arab world during the year 2020, after Saudi Arabia, where the volume of the Egyptian economy reached $ 361.8 billion, explaining that Egypt, according to analysts of the International Research Foundation, "Fitch Solio Shuns" of the Fitch Ratings Agency, is considered One of only three countries in the Middle East and North Africa will return to the growth rates they recorded before the Corona crisis during 2021, supported by a recovery in the oil and natural gas, and tourism sectors, where a growth rate of 5% was achieved during the fiscal year 2021/2022; In a way that reflects the success of the Egyptian economy in absorbing the repercussions of the "pandemic" and its recovery with the stimulus policies adopted by the government in support of economic activities. Experts of "Fitch Solio Shans" have expected that the GDP of Egypt will grow by 2.9% in the fiscal year 2021/2022.

 

The minister indicated that Bank «B. that. B. Paribas »also expects that the Egyptian economy will record a growth rate of 3.1% in the fiscal year 2020/2021, and that Egypt's GDP will grow by 5.3% during the fiscal year 2021/2022, supported by the recovery of consumer spending and the construction sector; This will translate the government's efforts in developing fiscal policies and expanding structural reforms.

 

The minister added that the International Monetary Fund had raised its estimates of the growth rate of the Egyptian economy for the next fiscal year 2021/2022; To record 5.7% against 5.5% in its previous report issued in January, expecting an acceleration of the growth rate; To achieve 5.8% in the 2025/2026 fiscal year, and a decrease in the inflation rate during the current fiscal year to 4.8%, compared to 5.7% in the 2019/2020 fiscal year, while increasing the regional counterpart economies to 12.4%; Reflecting the ability of the Egyptian economy to recover quickly from the negative repercussions of the Corona pandemic, and the government's success in managing this global crisis with high professionalism, by relying on a proactive methodology and flexible mechanisms to avoid the erosion of economic gains, by adopting incentive packages in support of the sectors and groups most affected, and taking Less severe measures, a gradual return to work, with full adherence to the precautionary measures; In order to open new development horizons that contribute to enhancing the participation of the private sector in major projects that are promising investment opportunities.

 

The minister explained that the unprecedented development movement was strongly reflected in improving the financial performance indicators of the budget in the period from July to March of the current fiscal year 2020/2021, as a first surplus of 25 billion pounds was achieved, despite the negative repercussions of the Corona crisis on economic activity; Reflecting the balanced financial policies that were based on increasing the government investments implemented during the past nine months, to 194.7 billion pounds, with an annual growth rate of 72.3%, taking into account extending the life of the debt, which reached 3.2 years in June 2020, instead of 1.3 General in June 2013.

 

Ahmed Kujok, Deputy Minister for Financial Policies and Institutional Development, indicated that the optimistic outlook of the International Monetary Fund, which was reflected in its expectations of an increase in the growth of the global economy to 6%, indicates an increase in the distribution of anti-Coronavirus vaccines programs worldwide, which helped to adapt completely to the nature of life. In light of the "pandemic", along with the financial measures taken by many countries, noting that the International Monetary Fund had praised, in a previous report, the efficiency and effectiveness of spending the financial package in support of the Egyptian economy that was allocated in the face of the negative repercussions of the pandemic equivalent to 2% of the GDP.

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