The International Press Conference by the Egyptian Prime Minister to announce the Egyptian government’s plan to deal with the global economic crisis
Sunday، 15 May 2022 - 07:51 PM
The Egyptian Prime Minister, Dr.Mostafa Madbouly, announced on Sunday 15-5-2022 the Egyptian government’s plan to deal with the global economic crisis in an international press at the headquarters of the General Authority for Investment and Free Zones.
The press conference was attended by Planning Minister Hala el Saeid, Trade and Industry Minister Nevine Gamae, Supply Minister Aly el Moselhi, Agriculture Minister el Sayyed el Qussair and chairman of the General Authority for Investment and Free Zones (GAFI) Mohamed Abdel Wahab.
Addressing the international press conference, Prime Minister Moustafa Madbouly has praised measures taken by the Egyptian leadership regarding economic reform programs and the process to expedite development rates in the country in the face of global crises caused by the coronavirus pandemic and the Russian-Ukrainian conflict.
He stated that Egypt’s exports have seen an upturn in the period after the end of the coronavirus pandemic and before the start of the Russian-Ukrainian crisis, with oil exports amounting to 45 billion dollars and growth rate reaching 6 percent.
He said that the World losses as a result of the crisis have reached about 12 trillion dollars, which is five times the gross domestic product of Africa last year and equivalent to the production of four Arab countries and six Asian states.
He added that institutions have started to reduce their economic growth indicators to 3.6 percent, expecting that to further decline in the coming stage.
In this respect, the premier said that Egypt will adopt five major approaches to face the global crisis, one of which is to boost the role of the private sector in economic activities.
Addressing the reporters, Madbouly said that Egypt has been acting to involve the private sector in efforts to reduce public debt and the budget deficit, as well as support the Egyptian Exchange (EGX) and social protection programs.
Madbouly noted that the World Trade Organization (WTO) has also underscored a slow trade movement during the current period, with losses estimated to reach some 300 billion dollars, saying that Public debt worldwide has risen by a whopping 351 percent, reaching some 303 trillion dollars.
He highlighted that the wheat import prices in Egypt have mounted up from 71 dollars per ton to 435 dollars per ton. Therefore, the value of wheat imports has risen from 2.7 billion to 4.4 billion dollars.
Madbouly asserted that the Russian-Ukrainian crisis added fuel to the fire, with further repercussions for the global economy, the prime minister said, noting that Fitch Ratings has downgraded its forecast for global economic growth in 2022, expecting it to reach 3.3 percent, which is also below its 3.6-percent reading in March.
Madbouly, also, said that a number of measures will be taken by the end of 2022 upon the directives of President Sisi during the Egyptian family Iftar in the fasting month of Ramadan.
Among the measures to be taken are promoting the role of the private sector in the economic activities and supporting the national industry to depend on local production as well as declaring a four-year program worth EGP 40 billion for the private sector partnership.
He also said the program includes a clear-cut plan to reduce the state debts and deficit during the coming four years as well as declaring an integrated plan to enhance the Egyptian bourse with the aim of improving the economy and helping the low-income brackets.
He added the state measures helped reduce the jobless rate from 13 percent to 7.3 percent despite the COVID-19 pandemic.
According to Madbouly, a large part of foreign debts is in form of soft loans from international institutions but the domestic debts reached 85 percent of the GDP. However, he said, the government seeks to bring the figure down to 75 percent in 2026.
He asserted that the Egyptian government never stopped negotiating with the International Monetary Fund, pointing out that the latest program with the IMF, which ended in June 2021, was considered one of the most successful.
Furthermore, he spoke of a new only-technical support program with the IMF, stressing that the financial part was no longer needed because the Egyptian economy was in active movement. However, this was before the Russian-Ukrainian crisis, which resulted in a wave of inflation worldwide, adding that Egypt had to negotiate again with the IMF on the financial component of the program.
According to Madbouly, about 20 billion dollars have exited the Egyptian market since the beginning of the year and before the start of the crisis, this is on the one hand. But, on the other hand, the Egyptian state could lure in a bunch of investments and deposits worth about 12 billion dollars.
The Prime Minister explained that work is underway to turn those deposits into investments in the coming stage.
Madbouly, then, praised measures taken to facilitate the establishment of emerging firms.
He said that according to directives by President Sisi, opening and closing such firms could be done through online notifications.
He noted that virtual companies will also be allowed to operate without a condition to secure business premises, pointing to easy terms to establish the single-individual firms.
He touched upon government decisions meant to facilitate licensing measures, setting a deadline of 20 days maximum to complete all permits.
Madbouly explained that with the given inflation rates, the government is forced to work in accordance with the worst case scenario, stressing that ongoing projects could not possibly be stopped now because this would mean big losses for Egypt.The Prime Minister made it clear that the government will only have to rearrange its priorities regarding the new projects, which should only be implemented if hard currency is available.
Positive reviews by the international media of the Prime Minister's international press conference