Egypt aims to reduce inflation to below 10% by early 2026: PM

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Thu, 08 Aug 2024 - 03:10 GMT

BY

Thu, 08 Aug 2024 - 03:10 GMT

CAIRO – 8 August 2024: Prime Minister Mostafa Madbouly announced that Egypt is targeting a reduction in the inflation rate to less than 10% by the beginning of 2026 at the latest.

Madbouly addressed reporters in a press conference on Thursday following the weekly Cabinet meeting in Alamein City. Here are the key points from the Prime Minister's statements:

  • The total amount of hot money exiting Egypt recently accounted for no more than 7-8% of the total market funds.

 

  • The hot money that left Egypt is unrelated to the primary sources of Egypt's reserves. This should not cause any concern for us.

 

  • Foreign currency reserves within Egypt remain stable, ensuring the security of the state's primary needs.

 

  • A comprehensive and transparent tax policy will be unveiled within a month.

 

  • There will be a clear strategy to bolster exports.

 

  • Reduction of inflation to below 10% marks a pivotal role for the government in the upcoming period.

 

  • Madbouly reassured the Egyptian populace that the country's economic conditions are stable, with reserves sufficient to cover the next eight months.

 

  • Despite having a clear vision, the government is susceptible to unforeseen shocks, such as escalating events in the Middle East and their global market implications.

 

  • Adjustments to the Initial Public Offering (IPO) program will be made in response to evolving global circumstances.

 

  • Dismissing speculations about the sale of airports, Madbouly emphasized the state's objective to enhance airport efficiency and operations through collaborations with specialized global firms.

 

  • Stressing the significance of technical education, he highlighted that advanced nations allocate over 50% of their education to technical training, underscoring its importance for Egypt's future.

 

  • Labor law stands as a legislative priority crucial for the state in the foreseeable future.

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