Egyptian economy improves, private sector to offer 700K jobs

CAIRO – 14 March 2018: The International Monetary Fund (IMF) praised the improvement of the Egyptian economy on financial and monetary policies, emphasizing the importance of merging the unofficial economy within Egypt’s indicators and the increase of tax revenues.

IMF’s Egypt Mission Chief Subir Lall said that the Egyptian economy was stable during the last period and recorded noticeable progress with the support of the gradually declined inflation.

Lall told the media delegation accompanying the Door Knock mission in Washington that Egypt took procedures concerning the subsidy, which redirected the expenses to more important sectors.

Members of the American Chamber of Commerce in Egypt (AmCham Egypt) arrived in Washington D.C. on Sunday to start the annual “Door Knock” mission in Washington.

The Knock Door mission lasts for five days, from March 11 to 16, to promote investment in Egypt.

The delegation includes 35 Egyptian companies to highlight the progress of the economic reform measures undertaken by the government and their impact on businesses, as well as to share their perspectives on issues of importance to the bilateral strategic relationship between the two countries.

Lall clarified that Egypt has to offer 700,000 job opportunities annually, noting that this number has to be led by the private sector, in light of the large population growth and the large number of youths.

He added that the private sector alone can provide these opportunities through the establishment of small and medium enterprises and the expansion of existing companies, where it is difficult to be provided by the public sector.

IMF’s upcoming mission to Egypt is expected to be in May, Lall said.

Egypt had embarked on a bold economic reform program that included the introduction of taxes, such as the value-added tax (VAT) and cutting energy subsidies, with the aim of trimming the budget deficit.

The country floated its currency in November 2016 before it clinched a $12 billion loan from the International Monetary Fund (IMF).

Egypt is set to receive a fourth disbursal of that loan, worth $2 billion, in June or July, the Finance Ministry said in previous statements, bringing the total it has received to $8 billion.