FILE - Minister of Housing Mostafa Madbouly
CAIRO - 16 February 2022: Prime Minister Dr Mostafa Madbouli said Wednesday the Egyptian economy has achieved a growth rate of 8.3% in the second quarter of the current fiscal year and 9.8% in the first quarter.
It means that the average growth rate for the first half of the year, from July to December, hit 9%, the premier said in a press conference following the government meeting held at the New Administrative Capital.
These figures show that the Egyptian economy has recovered and the growth process achieved during this period of the current fiscal year has been accelerating.
Comparing these figures with the previous year, in which the entire world was affected by the coronavirus pandemic and the country’s growth rate recorded less than 2%, it is believed that the growth rate in the second half of the year will reach 6%, the highest in the world, Madbouli said.
A report submitted by Planning Minister Hala el Saeed has shown a drop in the unemployment rate, he added.
He noted that the world is facing a great inflation problem and there are developed countries whose inflation rate hit 5.5%.
As per figures announced by the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt's inflation rate stood at 8%, the same as recorded before the emergence of the coronavirus, going in line with the country’s targets, he said.
The prime minister said the State exerts great efforts to provide basic commodities under whatever circumstances thanks to the good planning and securing strategic reserves for several months.
The State is implementing national mega projects and working to increase the agricultural areas and land reclamation, he said, adding that very large areas are set to be added as part of these efforts within two or three years to be able to withstand any global changes as regards the prices of goods.
The premier said that hikes in fuel prices in Egypt stood at 9.7% despite the coronavirus pandemic with the price of diesel fuel being kept unchanged, while the international fuel prices went up 54%.
The prime minister described building on agricultural lands as a crime against the coming generations, highlighting the role of national media in showing the gravity of the damage caused by this issue.
The State is also working hard to boost local industry in a way that would help increase the country’s exports, Madbouli stressed.
He made it clear that the gross domestic product figures do not reflect the real economy due to lack of figures released publicly by the informal economy, a matter that the State worked to address via cooperation with the international institutions.
Responding to a question from MENA on the old tenancy law, the prime minister said the government seeks to ensure balance between landlords and tenants via redrafting the old tenancy law in a way that takes into consideration the social dimension.
Madbouli said there will be sufficient period for discussing this issue, while programs and safe alternatives will be provided for the indigent categories, adding that a fund for supporting this file will be established.
Meanwhile, Madbouli noted that the State is constantly shifting the minimum wages, saying that increases in salaries for the civil servants will hit EGP 40 billion in the coming year, reflecting on the private sector as well.
The premier added that EGP 7 trillion (USD 441 million) were gained as GDP in the 2020-21 fiscal year.
He noted that if the growth rates continued in this way in the upcoming 5-6 years, Egypt would achieve a high rank worldwide concerning citizen’s share from the GDP.
The prime minister also said that the store of wheat in Egypt is followed up daily by the supply minister as Egypt owns a reserve that is sufficient to be consumed in the upcoming four and half months.
He also reassured citizens, saying that the state is securing the strategic goods despite international conflicts.
He also asserted that the Egyptian state is keen on cooperating with all international institutions in the field of economic reform.
The premier asserted that the petroleum prices in Egypt are connected with the global prices and that there is an Egyptian committee that is entrusted to determine fuel’s prices in Egypt.
He added that the government is working on developing the bourse through forming new various sub-bourses.
The prime minister also said that the hike in growth rates reflects the great efforts exerted by the government upon the directives of President Abdel Fattah El Sisi in order to double performance and development process in the upcoming period.