The Egyptian government highlighted the World Bank report on the future of the Egyptian economy in light of the current global implications.
The Egyptian government stated: “As part of the interest of the Center for Information and Decision Support of the Council of Ministers in monitoring and analyzing everything related to global economic reports relating to Egyptian affairs, the center highlighted the World Bank report “Egyptian Economic Observatory: Support”. Resilience in the face of crisis. Through Financial Reforms (with a Focus on the Education Sector)”, released in December 2022, which explains that Egypt, like other developing countries, is facing negative consequences in light of deteriorating global conditions. expressed in the growth of domestic prices, the increased burden on the general budget of the state, a sudden outflow and a large number of investment portfolios abroad.
Growth rates in Egypt rebounded significantly before the escalation of the war in Ukraine, as the average growth rate reached 6.6% in the 2021/2022 financial year, compared to 3.3% in 2020/2021, and global bank expectations indicate that growth will slow to 4.5%. During the 2022/2023 financial year; As a result of the consequences of the Russian-Ukrainian war, which are superimposed on the unrest associated with the Covid-19 pandemic.
The report added that Egypt will witness an improvement in external sector performance during the 2022/2023 financial year, driven by remittances from Egyptians working in the Gulf countries, an influx of foreign direct investment in the gas and oil sectors, in addition to potential funding from GCC countries.
The report states that Egypt’s macroeconomic and structural reforms will help it overcome the current situation, as the reforms adopted by the Egyptian government since 2014 to reduce macroeconomic imbalances, improve the efficiency of the energy sector and mobilize financing have allowed Egypt to enter successive crises with better position of financial accounts. Government and foreign exchange reserves are large, and institutional reforms have been undertaken to improve the business climate, especially in terms of facilitating trade and exit or restructuring of companies from the market.
In addition, the government has taken steps to increase private sector participation and mobilize private capital in specific sectors such as solid waste management. This is combined with the expansion of social protection initiatives such as the Takaful and Karama program, which provides targeted support to protect the most vulnerable from the effects of rising prices.
Source: RT
