Finance Minister: Global challenges still put severe pressure on emerging economies

CAIRO - 25 July 2024: Egyptian Minister of Finance Ahmed Kouchouk stressed that despite the indicators that the global economy is witnessing a state of stability, there are still varying levels of recovery and that global economic challenges still represent severe pressures on emerging economies and developing countries.

 

Minister Kouchouk added that the challenges are due to the high cost of financing and the decline in foreign direct investment flows directed to emerging countries.

 

The Minister said, during a "World Economic Outlook" session on the first day of his participation in the G20 meetings in Brazil, that "global debt" issues hinder our common goals of fair growth, which requires comprehensive international solutions that contribute to supporting and assisting emerging economies in a way that enhances their capabilities and enables them to deal positively and flexibly with global shocks.

 

He also explained that the "protective trade policies" pursued by some advanced economies create additional obstacles to the movement of developing countries' exports.

 

The Minister further added that we look forward to international financial institutions adopting balanced and more stimulating policies for emerging economies, in a way that contributes to helping them meet the financing needs necessary to achieve development and improve the standard of living, along with the commitment to maintaining macroeconomic stability and financial sustainability.

 

The Minister stressed the importance of directing reforms to support the competitiveness and productivity of the Egyptian economy.

 

He pointed out that Egypt is on the right track to adjust the state's public finances, as we achieved a primary surplus of 6.1% of GDP in fiscal year 2023/2024, driven by exceptional inflows of foreign direct investment due to the Ras El-Hikma deal. 

 

He also noted that the new government places at the top of its priorities enhancing the growth of the private sector by increasing the competitiveness and productivity of the Egyptian economy through providing more economic opportunities in a competitive and investment-attractive climate.