Written by Ahmed Yacoub
Wednesday, May 17, 2023 06:00 PM
Dr. Mohamed Maait, Minister of Finance, held an open dialogue with the deans, professors, and students of Badr University in Cairo, in the presence of Dr. Hassan El-Kalla, Chairman of the Board of Trustees, and Dr. Amr El-Etreby, Vice President of the University for Postgraduate Studies, Environmental Affairs and Community Service, about the performance of the Egyptian economy before and after the global crises, in which the repercussions intertwined. The Corona pandemic and the negative effects of the war in Europe, and answered the questions in their minds; What constitutes the reality of the economic situation in Egypt, saying: “Egypt has been affected, like various countries of the world, especially emerging economies, by harsh pressures, and the government deals with a balanced methodology; To restore economic stability, reduce inflation, and ease burdens as much as possible on citizens, while committing to achieving financial discipline, to maintain the state’s safe economic path.. Trust in your country; And just as we have overcome many crises before, we will overcome together the current global and local challenges.
The minister added that the state was subjected to economic shocks and severe weakness in the infrastructure after 2011, and there was no alternative to construction, development and economic reform, and relying on our capabilities to solve our intractable problems, explaining that the state was already able to achieve economic progress and turn the shortage of electricity and gas into a surplus for export. A strong infrastructure was established capable of accommodating the expansions of productive activities, but “it is not for free.. this is trillions of pounds.” We also implemented a comprehensive national program for economic reform, which was reflected in the improvement of economic performance indicators prior to the successive global crises.
The minister indicated that the budget deficit decreased in 6 years from 12.5% to 6.1% of GDP, but the exceptional circumstances the global and Egyptian economies are witnessing have been intensified by the repercussions of the war in Europe, in the wake of the Corona pandemic, leading to an increase in the budget deficit in the current fiscal year. to 6.4% of GDP this year; As a result of severe pressures on the state’s public treasury, as prices of goods and services rose; Due to the imbalance of supply and demand, and then the value of the import bill doubled, while the restrictive monetary policies of global central banks caused the exit of what is known as hot money from emerging markets, including Egypt, and high financing costs, and access to international markets became difficult and costly, and public revenues declined with The slowdown in economic activity, which the state deals with with a more balanced package of measures and procedures to contain internal and external shocks.
The minister explained that the debt-to-GDP rate decreased from 102.8% of GDP in June 2016 to 87.2% in June 2022, but it will be temporarily affected by the repercussions of global and local economic conditions, especially with the change in the interest rate, and we expect it to rise during the current fiscal year, but we are targeting Putting it on a downward path in the medium term, pointing out that we achieved a primary surplus for the fifth year of 1.3% of GDP in the last fiscal year instead of a primary deficit that lasted for more than 20 years, and we target 2.5% of GDP in the budget for the next fiscal year. This contributes to creating a financial space to expand the social protection network and mitigate global shocks.
The minister emphasized that we are betting on maximizing the role of the private sector in economic activity by proceeding with the implementation of the government’s proposals program, to attract more private investments, within the framework of the state ownership policy document, so that the private sector will be the locomotive of development in Egypt.
Dr. Hassan El-Kalla, Chairman of the Board of Trustees of Badr University in Cairo, expressed his appreciation to Dr. Mohamed Moait, Minister of Finance; For his response to Badr University’s invitation to open the door for discussion with deans, professors, and students about the state of the Egyptian economy before and after the global crises, and for his response to all inquiries that revolve in the minds of young people in a simple language, explaining the facts without underestimating or exaggerating, within the activities of this year’s cultural season.
He explained that the university administration is keen to provide successful models in the field of public and private work to set an example among male and female students, and to instill the values of work, diligence and perseverance to achieve goals and overcome challenges.
Dr. Amr El-Etreby, Vice President of the University for Postgraduate Studies, Environmental Affairs and Community Service, said that we are keen to develop national awareness among male and female students, so that we do not leave them easy prey for rumors that target Egypt and impede its unprecedented development process, noting that the Minister of Finance was able to draw A simplified picture of the true economic situation of Egypt before and after the global crises.
Dr. Hassan Al-Kalla gave the shield of Badr University in Cairo to Dr. Mohamed Moait, Minister of Finance; In appreciation of his efforts in managing the state’s public finances amid huge waves of global challenges.
