Minister of Finance Mohamed Maait said that the government is closely following the repercussions of the Russian-Ukrainian crisis on global prices and supply chains, which comes with a significant rise in global interest rates.
Moreover, the government plans to deal positively and flexibly with these international challenges according to the worst-case scenario where the conflict lasts for longer.
Maait explained that the global environment of the economy is witnessing successive changes that are casting a shadow over the economies of several countries, especially emerging ones. The Egyptian government will take all necessary measures and policies to ensure macroeconomic stability, sustain its ability to flexibly deal with unprecedented global challenges, and reduce the impact of this global crisis on the most affected segments of citizens and sectors.
“To do this, it will adopt a proactive approach with steps that support growth, industry, and export. This is expected to generate more jobs, improve the standard of living of citizens, and improve the services provided to them,” the minister said.
He added that the government decided to start talks with officials of the International Monetary Fund (IMF) to consult on a new programme to maintain economic and financial stability; and enhance comprehensive structural reforms, the ability of the Egyptian economy to withstand external shocks, and the potential repercussions of the conflict in Ukraine.
Furthermore, the minister expressed his happiness with the IMF’s praise of the package of financial and social protection measures taken by the Egyptian government to deal with the global crisis and mitigate its effects on citizens.
He pointed out that the new programme does not include any additional burdens on citizens, but rather aims to preserve the gains of the previous economic reform programme, sustain positive job-rich growth rates, and maintain declining deficit and debt rates of GDP by moving forward with providing greater opportunities for the private sector in the development process in a way that enhances its contributions to economic activity.
Maait stressed that the confidence of international financing and rating institutions in the Egyptian economy certifies that Egypt is on the right path and that its economy is able to achieve its goals even through a global crisis and a pandemic.
He also affirmed that there is a presidential mandate to maintain the state’s safe economic path and preserve the gains of economic reform with the aim of enabling the government to achieve its objectives and meet the development needs of citizens as well as expand the umbrella of social protection and absorb the largest possible amount of global shocks.