By: Abdallah Beder
Cairo – Mubasher: The Egyptian economy is expected to register a 3.6% growth rate during fiscal year (FY) 2019/2020, according to the Minister of Finance, Mohamed Maait
Egypt is one of the few countries that was able to achieve growth despite the coronavirus (COVID-19) pandemic, registering the third-highest growth rate worldwide, the minister told reporters on Monday.
Speaking during the Hapi Conference, Maait said that a 2.8% growth rate is targeted for FY2020/2021, adding that the FY2021/2022 public budget targets 5.4% growth.
The unemployment rate declined below 8%, he further noted, emphasizing that achieving economic recovery requires collective efforts to face the negative impacts of the pandemic on the global economy.
Furthermore, economic reforms allowed the Egyptian government to allocate the needed funds to various sectors despite the pandemic, including more than EGP 100 billion for the healthcare sector, supporting exports and the aviation industry, said the minister.
The minister clarified that EGP 25 billion were directed towards subsidizing exporters, in cooperation with the Ministry of Trade and Industry. As for supporting the industrial sector, Maait said that reducing natural gas and electricity prices for the sector cost around EGP 11 billion per year.
Moreover, the government was able to raise wages and pensions, maintain socioeconomic stability, and stimulating economic growth while reducing debt rates, Maait stated.
The government cut the debt to GDP ratio by 20% from 108% in FY 2019/2020 to 88% in FY 2020/2021, and without the pandemic, this rate would have been further cut by 25% to 82%, the minister explained.
Maait estimates the decline in targeted public revenues for the coming fiscal year at EGP 150-160 billion despite the aim of raising revenues by 15% mostly from taxes by 11-12%.
Speaking about a presidential initiative to replace old vehicles and increase the use of alternative fuel, the minister said the first phase targets converting 250,000 natural gas vehicles in three years, adding that EGP 2.1 billion has been allocated to the initiative in FY 2021/2021.
