News

‘Egypt Is Less Affected By Global Economic Crises’: IMF Official

mm
‘Egypt Is Less Affected By Global Economic Crises’: IMF Official

Source: Reuters

IMF’s Senior Resident Representative, Reza Baqir, recently stated that Egypt is less affected by global economic challenges on Monday at the two-day Euromoney Egypt 2018 conference, Al Ahram reports.

“The rise of protectionism by the United States started an additional concern that will affect every country. Countries with strong fundamental roofs like Egypt will be less affected as it is less reliant on external funding,” he noted.

Baqir added that in countries like Argentina and Turkey, the economic stability is much worse, as both countries currently have the worst performing currencies in the world and hold a large stock of dollar-denominated debt.

“We are very strongly trying to help the government to create jobs, which is a very high priority,” he also mentioned, noting that with further stability in the labor market, there will be more domestic investment.

In a statement earlier this May, the IMF said that the labour force in Egypt is expected to rise by 20 percent, amounting to 80 million Egyptians, by 2028.

“If this country can tap the potential of its young people, their absorption into the economy could boost growth into the range of 6 to 8 percent,” said David Lipton, Managing Director of the IMF.

Programme leader at the World Bank Ashish Khanna highlighted that 16% of Egypt’s GDP is externally reliant and it is mostly dedicated to important projects.

“I believe that if we can work together, Egypt has a huge potential,” said Khanna.

Egypt witnessed the best performance in the region’s stock market this week, as it gained 4.82 percent.

“After a quiet period this summer, we are finally witnessing an uptick in turnover and performance. This is justified as Egypt has posted very decent earnings growth numbers, and is looking among the cheapest in emerging markets,” Mohamed Al Hajj, equities strategist at EGF Hermes, informed Zawya.

Nevertheless, Egypt’s Finance Minister, Mohamed Maait, told CNBC in an interview that the austerity measures behind Egypt’s economic growth has led to an increase in living costs for Egyptians and social discontent, adding that the prospects for a ‘market turmoil’ is still present.

Reducing the overall deficit to 8.4% of the GDP by the end of this year is currently one of the main priorities of the government, the finance minister added.

A report released by Centre for International Development in Harvard University classified Egypt as one of the world’s fastest growing economy in the coming decade, coming in third place after Uganda and India.

Samsung Will Give Egypt One Million Tablets for Upcoming Academic Year
Police Foil Bombing Near US Embassy in Cairo


Subscribe to our newsletter


News
mm
@https://twitter.com/mirna_khaled12

Mirna Khaled Sayed is a writer, researcher and aspiring public interest/political communication specialist interested in women's rights, cultural heritage and fashion, and political communication.

More in News

Egypt Delays Onion Export Ban to October

Shereif Barakat24 September 2023

Egyptian University Student Develops ‘Egypt Metro’ App for Seamless Navigation

Farah Rafik23 September 2023

Bridging Egyptian Artists and the World: ‘Forever is Now’ Exhibition Returns at the Pyramids

Egyptian Streets22 September 2023

Egyptian Minister of Environment to Co-Chair COP28 Negotiations on Climate Finance

Muhammed Kotb21 September 2023

Sunken Sanctuary of Aphrodite and Temple of Amun Discovered in Egypt

Shereif Barakat20 September 2023

Egypt’s New Capital Plans to Sell 10% of its Shares

Egyptian Streets19 September 2023

El Gouna Film Festival Shares Details for Sixth Edition

Heidi Aref19 September 2023

9 Egyptian Military Personnel Killed, Injured in Truck Accident

Marina Makary19 September 2023