Cabinet’s media office statment: Govt predicts national economy to achieve 4.2 pct by end of growth rate 2020

The Egyptian government expected the national economy to achieve a growth rate of 4.2 percent by the end of the year.

If achieved, it would be one of the best growth rates worldwide.

The fresh forecast was one of proactive scenarios the government’s economic ministerial group was keen to develop to deal with the current crisis resulting from ramifications of the novel coronavirus in the long run.

In a statement issued by the Cabinet’s media office, Prime Minister Mostafa Madbouli said the government should be ready with precautionary and proactive measures to ensure that the Egyptian economy would not suffer a negative impact harming gains achieved by the economic reform program.

The premier was holding a meeting with Governor of the Central Bank of Egypt Tarek Amer, Minister of Planning and Economic Development Hala el Saeed, Minister of Finance Mohamed Maait, Minister of International Cooperation Rania al Mashat and Minister of State for Information Osama Hekal.

Madbouli expected Egypt’s business climate to be back to normal by June, expressing hope that the economy would rapidly recover from ramifications the whole world is going through due to the coronavirus outbreak.

All international institutions have trust in Egypt thanks to the great efforts made by the state over the past four years since the launch of the economic reform program, he pointed out.

These international institutions hasten to support Egypt in order to ensure the continued success of its economic program, which is considered a “model” to be followed by the developing counties, he added.

The prime minister stressed that the state and economic group are keen to build on these gains by taking all proactive measures in a way that guarantees Egypt’s continued recovery.

At the beginning of the current year, the government sought a new program with the IMF, only covering the technical support aspect, but after the coronavirus fallout, there is an urgent need for financial support as well, he added.

The Egyptian economy has managed to withstand thanks to measures taken over the past four years. But the government prepares for the future, and takes a precautionary step to avoid any repercussions, so it will start discussions with the IMF over the executive steps within few days, he added.

For his part, the CBE governor said that the Egyptian banking sector has regained much of its power during the past years, and has advantages that made it able now to play a major role in the current crisis.

The sector’s solid situation has enabled it to support the public and private sectors as well as citizens, Amer said.

The IMF is very enthusiastic to support the Egyptian economy that enjoys great credibility because of the outstanding success of the country’s economic program, he said.

The new one-year program will allow us to benefit from the new financing, he added.

The Egyptian economy and its performance indicators were at their best until the beginning of March 2020 before the coronavirus crisis, the planning minister said.

The Egyptian economy enjoys flexibility and diversity, Saeed added.

We expect that the Egyptian economy will achieve a 4.2 percent growth rate by the end of this year, to be one of the best growth rates globally, as a result of the measures taken by the government to support sectors affected by this crisis, the minister said.

We are open to mull the post-coronavirus global economy structure with the national academic community, civil society and the private sector, she added.

The Egyptian state has already invested in some sectors, such as information technology, Saeed said, adding that the health, pharmaceutical and medical sectors will have priority too.

Egypt, through the Ministry of International Cooperation, has several cooperation initiatives with the World Bank, the African Development Bank, the European Investment Bank, and other international agencies and institutions, the international cooperation minister said.

She added that the funding packages received from international institutions are less costly than any other financing forms. 

Source: State Information Service Egypt