Egypt's economic reform program proven its success according to testimony of int'l institutions

CAIRO – 11 November 2021: The Ministry of Finance issued Thursday a report on the most important indicators of the Egyptian economy, as the Egyptian economic reform program has proven its success according to the testimony of major international institutions.

According to the report, the results of the economic reform program appeared during the Corona pandemic, because of which the major economies of the world were affected, but thanks to the economic reform program, the state was able to support and support the affected sectors and maintain positive growth rates.

The Ministry published infographics which included the results of the indicators of the Egyptian economy exceeded international expectations.

Data from the Ministry of Finance showed a decrease in the overall deficit as a percentage of GDP in 2020-2021 to 7.4 percent, compared to 8.7 percent in 2009-2010.

It continued to achieve a primary surplus instead of a primary deficit as a percentage of GDP in 2020-2021 to 1.45 percent instead of -2.1 percent in 2009-2010.

The data indicated that the amount of public revenues increased more than four times, reaching LE 1108 billion in 2020-2021 instead of LE 268.1 billion in 2009-2010, and the amount of public expenditures increased more than four times, reaching LE 1578 billion in 2020-2021, compared to LE 366 billion in 2009-2010.

The data also showed a decrease in the inflation rate to 4.5% in 2020-2021, down from 11.7% in 2009-2010, according to the Central Bank of Egypt, the Central Agency for Public Mobilization and Statistics and Bloomberg.

It indicated a decrease in the debt of public budget agencies as a percentage of GDP, reaching 91% in 2020-2021, compared to 79% in 2009-2010.

The unemployment rate dipped to 7.9 percent during 2020, compared to 9% in 2010, according to the revealed data.

The data showed that the net foreign reserves recorded $40.6 billion in July 2021, which covers 7.6 months of imports.

The infographics inspected the international acclaim for the continued strong performance of the Egyptian economy and the improvement of its most prominent indicators.

According the infographics, Oxford Business Group said that the series of fiscal and monetary reforms that have been implemented in recent years have helped enhance the competitiveness of locally manufactured exports and attract many local and foreign investments, according to the infographics.

World Bank noted that economic reforms in recent years helped stabilize the Egyptian economy and improve its financial performance, which helped rehabilitate it to overcome the Corona crisis.

It reported Moody’s stated that the track record in implementing economic and financial reforms supports Egypt's credit file, in addition to its contribution to restoring the economy's achievement of primary surpluses, which are likely to continue to be achieved in the coming years.