Egypt’s economic outlook is showing signs of recovery, according to the country’s Finance Minister, who spoke during the recent meetings of the International Monetary Fund and the World Bank. The discussions highlighted progress in fiscal reforms and macroeconomic stabilization efforts amid ongoing challenges.
The minister emphasized that structural adjustments initiated in 2016 laid a solid foundation for resilience, particularly during global shocks such as the pandemic and the war in Ukraine. These reforms helped stabilize the exchange rate, reduce inflation from peaks above 30% to single digits, and achieve a primary budget surplus for the first time in years.
As a result, foreign reserves improved, essential goods became more available, and real wage increases outpaced inflation, enhancing household purchasing power. External debt also declined from a high of 110% of GDP to 81%, reflecting improved debt management.
However, new external pressures emerged in 2020, including the collapse of tourism revenues, reduced Suez Canal earnings, and lower remittances due to the pandemic. Government spending rose to support vulnerable sectors, contributing to renewed fiscal strain.
Despite these setbacks, the earlier reforms enabled Egypt to withstand the turbulence. The minister noted that while inflation has resurged and parallel market exchange rates have reappeared, current policies are focused on restoring balance through targeted subsidies, attracting foreign investment, and advancing privatization programs.
Ongoing engagement with international financial institutions is supporting these efforts, with policy dialogue centered on sustainable debt levels, public financial management, and inclusive growth.
— news from المصري اليوم
— News Original —
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المسار الاقتصادي لمصر يتحسن.. وزير المالية في اجتماعات «النقد والبنك الدوليين» المصري اليوم