Finance Minister Mohamed Maait said on Monday Egypt recorded the highest growth rate since 2008 at 6.6% of GDP by the end of the past fiscal year, compared to a global average of 3.2% for emerging economies.
Speaking during a press conference, Maait expressed his astonishment at the attempts by some people to hold the state responsible for the negative ramifications of the world’s current economic crisis.
Maait noted that the unemployment rate fell to 7.2% in June 2022, creating 826,000 jobs, mentioning that the budget deficit decreased from 13% in the fiscal year 2012-2013 to 6.1% of GDP in the last fiscal year, making the budget deficit rate, for the first time in years, lower than the average of emerging countries.
Maait pointed out that Egypt achieved a primary surplus for the fifth year in a row, at a value of EGP 100 billion, at a rate of 1.3% of GDP, making the country one of the few emerging economies that achieved a primary surplus in the last fiscal year 2021-2022.
According to the minister, the state budget revenues increased by 19.6%, compared to an annual growth rate of 14.8% for expenditures, and tax revenues up by 18.7%.
The debt-to-GDP ratio decreased from 103% in June 2017 to 87.2% in June 2022, compared to a global government debt ratio of 99% of global GDP, the minister said, noting the debt ratio also decreased by 15.6% of GDP during the period from 2016 to 2022 compared to an increase of 19.5% in emerging countries.
Egypt seeks to reduce the debt-to-GDP ratio to 75% by 2026, he underlined.
He also pointed out the size of the Egyptian economy has tripled during the past six years, at rates that exceed government indebtedness, a matter which reflects the government’s success in directing development funds to real investments that improved the infrastructure with unprecedented rates.
Egypt’s petroleum exports achieved $13 billion, with a $4 billion surplus, during the period from July to March of the last fiscal year, while the non-petroleum exports amounted to $19.4 billion, with an annual growth of 33%, remittances from Egyptians abroad ($32.3 billion), and Suez Canal ($7 billion).
The government aims to increase the percentage of the private sector’s contributions to the total implemented investments to 65% and attract foreign direct investments of $10 billion annually over the next four years.
Maait pointed to the increase in the subsidy of food commodities by about 17% during the last fiscal year to reach EGP 97 billion, and the value of pensions by about 70% during the period from 2018 to 2022, from which 10.5 million citizens benefit.
He also said the spending on salaries increased to reach EGP 400 billion in the current fiscal year’s budget.
As of next September, families benefiting from cash support will be increased to 5 million families (about 20 million citizens), at a total cost of EGP 25 billion, he added.
Source: State Information Service Egypt