Nigel Clarke, Deputy Managing Director of the International Monetary Fund (IMF), on Sunday evening expressed optimism regarding the future performance of the Egyptian economy, citing tangible progress in its macroeconomic reform programme.
He made the remarks during a press conference held by Egyptian Prime Minister Mostafa Madbouly at the government headquarters in the New Administrative Capital.
At the beginning of his speech, Clarke thanked the Prime Minister, the Governor of the Central Bank of Egypt, and the Ministers of Planning and Economic Development, and Finance. He expressed his appreciation for the warm reception and hospitality extended to him and his accompanying delegation since their arrival in Egypt.
Clarke affirmed that Egypt has made “tangible and clear progress” regarding its macroeconomic reform programme, which he described as “plain to see.” He stated, “this programme, an Egyptian programme, has resulted in a strong decline in inflation and unemployment rates, while foreign exchange reserve levels have jumped, alongside the availability and abundance of foreign currencies. This is no longer a problem as it was before. We have also witnessed a steady increase in GDP growth rates, while the Egyptian economy is on its way to stability.”
The IMF official attributed these “important positive results” of the Egyptian economic reform programme to “the bold decisions and actions led by the Egyptian government.” He noted that these reforms include “the shift towards a flexible exchange rate system, the adoption of a monetary policy that took economic stability as its basis, as well as the strenuous efforts being made to mobilise domestic revenues to ensure a sustainable and stable fiscal policy.”
Clarke also noted that progress in Egypt’s economic reform programme “also includes the social dimension and providing support for the most needy groups.” He stated, “I welcome these reforms that have led to these positive results,” and called for the continued implementation of the economic reform programme.
Addressing the role of the private sector, Clarke pointed to “the increase in the percentage of financing provided to the private sector, and the increase in the private sector’s share of GDP as well.” He added, “This all came as a direct response to the improvement and stability witnessed by the macroeconomy.”
The IMF official explained that a rapid transition to a more sustainable economic model requires “an economic model in which the private sector leads growth and economic activity, and this is indeed the current path, and what we are moving forward together to accelerate, so that the state’s role in economic activity is reduced, making way for the private sector and promoting equal opportunities for different economic sectors.”
He continued, “This will enhance the dynamism of the economy and lead to attracting investments locally as well as international investments, and it will also lead to achieving more progress and prosperity for the Egyptian economy, and most importantly, this will lead to a more sustainable economic model.”
Clarke also discussed economic shocks, which he described as “a prominent feature in the current global economic system.” He explained that “what is most important and sensitive for this region is how the economy can be resilient to absorb such economic shocks,” stressing that “achieving that resilience depends strongly on economic stability and continuous efforts to transition to a more stable economic model.”
He expressed the IMF’s appreciation for its “extended partnership with Egypt,” which he described as “an important member of the Fund.” Mr Clarke affirmed that “the International Monetary Fund will continue to provide support to Egypt to complete the implementation of bold economic reforms, contributing to achieving positive results for the Egyptian people.”
Concluding his remarks, Clarke thanked the attendees and reiterated his optimism regarding the Egyptian economy’s ability to achieve positive results in the future.
