Imported inflation in Egypt is 30-35%: planning minister

CAIRO - 22 February 2022: Minister of Planning and Economic Development Hala al-Said stated in a press conference Tuesday that imported inflation in Egypt ranges between 30 percent and 35 percent.

The minister highlighted that the economic crisis that ensued from the pandemic caused a shortage in staples in some countries, which did not happen in Egypt at all. Drawing on the international orientation towards achieving self-sufficiency from food, Minister Said pointed out that Egypt is working on boosting agricultural output through projects such as Toshki, and New Delta among others.

Speaking of speculations on global inflation, and economy in general, the minister of planning said, “the international scene is still unclear because variants of the virus keep emerging.”

Consultant to the minister for Economic Affairs Fathy Sakr detailed the factors that incurred the current global inflation. Those are the pandemic, and as a consequence, the irregularity of international supply chains. That is in addition to the geopolitical crises at stake.

As for the steps Egypt made to mitigate its impact, the consultant to the minister said that the government works on rationalizing imports, raising the share of local components in goods produced locally, securing a strategic stock of goods sufficient for 6-7 months, and purchasing oil futures.

Sakr also seconded the minister’s statement on agriculture saying that the sector has been growing at an increasing rate. He further pointed out that there is no competition between the government and the private sector, clarifying that private investments shrank due to the lockdown and remote working, so the state had to step in through a number of initiatives.

In that context, Minister Said underlined that the sectors of manufacturing, and ICT among others are dominated by private investors. The planning minister further underscored that “the growth of GDP reflects the growth of various sectors, which reflects a rise in investments, which in turn, reflects the improvement in infrastructure and services and a decline in unemployment.”

The minister also disclosed that a competitiveness index for each governorate will be launched in March.