IMF and World Bank expect Egypt's economic growth to increase, Mashat
Minister of Planning, Economic Development, and International Cooperation Rania al-Mashat participated in a press conference held by Prime Minister Mostafa Madbouly following the weekly cabinet meeting.
Mashat reviewed the most important economic developments, including the results of Egypt's participation in the Spring Meetings of the International Monetary Fund (IMF) and the World Bank, and their outlook on the Egyptian economy.
Mashat revealed, according to a statement on Tuesday, that the Ministry of Planning, Economic Development, and International Cooperation will announce the details of the National Economic Development Narrative in June.
The narrative will include clear targets for macroeconomic policies, foreign direct investment, industrial development, jobs, and the labor market, in line with the government's work program, Egypt Vision 2030, and the economic reform policies currently being implemented, she said.
Mashat discussed the spring meetings of the IMF and the World Bank and their forecasts for global economic growth in light of recent economic developments such as protectionist trade policies.
The global economic situation is uncertain, she said, a fact which was clearly evident in meetings with officials from international institutions, think tanks, decision-makers, and other government officials.
Mashat added that protectionist trade policies and uncertainty were reflected in the results of the IMF's World Economic Outlook report.
She explained that the report set a baseline scenario indicating that global economic growth would decline from 3.3 percent in 2024 to 2.8 percent in 2025, before rebounding to three percent in 2026 – a decrease of 0.5 percent and 0.3 percent from previous forecasts, if the announced trade policies remain as they are.
The minister pointed out that although these expectations have an impact on growth in most regions of the world, the forecasts of the two largest financial institutions—the IMF and the World Bank—for the Egyptian economy are positive despite global developments.
The review issued at the IMF's Spring Meetings forecasts growth of 3.8 percent in the current fiscal year, compared to 2.4 percent in the previous fiscal year, and then 4.3 percent and 4.8 percent in the next two fiscal years, respectively, the statement said.
The World Bank, meanwhile, expects growth to rise to 3.8 percent and 4.2 percent in the current and next fiscal years, it added.
The forecasts issued by the IMF and the World Bank are consistent with the government's growth projections, she said, as these forecasts are due to improvements in macroeconomic indicators, progress in implementing economic and structural reforms, and private sector engagement.
They are also due to a decline in inflation from its peak levels and the beginning of the monetary easing cycle.
The minister pointed out that the World Bank's meetings, which concluded late April, focused on growth and employment.
Mashat noted that the World Bank focused on five priority sectors to increase growth and employment rates: infrastructure (physical and digital), agriculture as a labor-intensive business activity, primary healthcare, and tourism, which represents an employment multiplier, as each direct job creates four indirect jobs, in addition to value-added local manufacturing.
Edited translation from Al-Masry Al-Youm
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