Minister displays Egypt's economic performance during COVID-19 crisis in IMF, WBG meetings

CAIRO - 18 October 2020: In one of the 2020 Annual Meetings of the International Monetary Fund and the World Bank Group, Minister of Finance Mohamed Mait displayed figures on the performance of the Egyptian economy during the COVID-19 crisis and plans for the future.

The minister stated that Egypt’s GDP achieved a growth rate of 3.6 percent, and that the unemployment rate in FY2019/2020 did not surpass that of FY2017/2018 standing at 9.6 percent. The deficit declined to become 7.9 percent in FY2019/2020 down from 8.2 percent in FY2018/2019. Furthermore, the primary surplus hit 1.8 percent and the government debt to GDP ratio decreased to 87 percent compared to 90.4 percent in FY2018/2019 and 108 percent in FY2016/2017. 

Mait pointed out that the prices of basic goods remained stable given that inflation recorded 4.2 percent compared to eight percent in the previous fiscal year.

The minister highlighted that the Egyptian government’s priorities are boosting investments in the sectors of transportation, natural gas, oil, renewable energy, manufacturing, export, SMEs as well as expanding the role of the private sector in the development process in a fashion that reduces unemployment.

Mait showcased that the second phase of establishing 1,000 language schools project in the public-private partnership system will be launched in October. The goal of the project is producing individuals who are creative, innovative, and able to carry out research. 

The minister underlined that Egypt is the only country in Africa and the Middle East that has been able to maintain the ratings of three top establishments that are S&P Global Ratings, Moody’s, and Fitch during the ongoing global economic crisis.

Deputy Minister of Finance for Financial Policies and Institutional Development Ahmed Kojek said that the Egyptian public debt strategy focuses on the diversification of financing sources, prolongement of the payback period, and low interest rates.

Kojek added that demand on green bonds offered in September is high in both the primary and secondary markets. The five-year U.S. dollar-denominated Green Bonds having a yield of around 5.75 percent are expected to raise $500 million.