Al Mashat reviews the outcomes of her participation in the Spring Meetings of the International Monetary Fund and the World Bank

Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, participated in the press conference held by H.E. Dr. Mostafa Madbouly, the Prime Minister, following the weekly cabinet meeting.

The objective was to review the most prominent developments in economic affairs, including the outcomes of Egypt's participation in the Spring Meetings of the International Monetary Fund and the World Bank, and the international institutions' perspective on the Egyptian economy.

H.E. Dr. Rania Al-Mashat highlighted that the Ministry of Planning, Economic Development and International Cooperation will announce the details of the National Narrative for Economic Development during next June.

This narrative includes clear targets for macroeconomic policies, foreign direct investment, industrial development, jobs, and the labor market, aligning with the government's work program, Egypt's Vision 2030, and the ongoing economic reform policies.

H.E. Minister Al-Mashat discussed the Spring Meetings of the IMF and the World Bank, and the expectations of the two largest international institutions for global economic growth in general, and Egypt's economy in particular, in light of recent global economic developments, most notably protectionist trade policies.

H.E. Dr. Al-Mashat emphasized that a state of uncertainty prevails in the global economic situation, which was evident in meetings with officials from international institutions, think tanks, policymakers, and other government officials.

Protectionist trade policies and the state of uncertainty were reflected in the results of the World Economic Outlook report issued by the IMF, according to H.E. Dr. Rania Al-Mashat.

H.E. Minister Al-Mashat added that the report presented a baseline scenario indicating a decline in global economic growth from 3.3% in 2024 to 2.8% in 2025, before rebounding to 3% in 2026. This represents a decrease of 0.5% and 0.3% from previous forecasts, assuming the continuation of the announced trade policies as they are.

H.E. Dr. Al-Mashat continued, "The IMF set a more pessimistic scenario in the event of a response from trade partners and the adoption of counter-measures, leading to a decrease in growth in 2025 to about 1.5% and 2.4% in 2026, a decline of 1.3% and 0.6% from previous expectations. Additionally, the trade policy uncertainty index has reached its highest levels ever, coinciding with the increase in tariffs imposed by the United States of America."

H.E. Minister Al-Mashat pointed out that despite the reflection of these expectations 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 were positive despite global developments.

The review issued during the Spring Meetings by the IMF projected growth to reach 3.8% in the current fiscal year, compared to 2.4% in the previous fiscal year, and then 4.3% and 4.8% in the following two fiscal years, respectively. Meanwhile, the World Bank expects growth to rise to 3.8% and 4.2% in the current and next fiscal years.

H.E. Dr. Al-Mashat mentioned that the forecasts issued by the IMF and the World Bank are consistent with the government's growth expectations and are attributed to the improvement in macroeconomic indicators, the progress in implementing economic and structural reforms, the involvement of the private sector, as well as the decline in inflation from its peak and the start of the monetary easing cycle.

H.E. Minister Al-Mashat also noted the World Bank's focus, in the meetings that concluded earlier this week, on growth and employment, in light of the new vision of the World Bank President, H.E. Mr. Ajay Banga.

H.E. Dr. Al-Mashat affirmed that this vision aims to enhance global economic stability, increase employment rates, and promote protection and reduce migration rates through real jobs within countries, partnerships between the public and private sectors, and continuous reforms to involve the private sector in growth.

H.E. Minister Al-Mashat outlined that the World Bank focused on five priority sectors for increasing growth and employment rates: infrastructure (physical and digital), agriculture as a labor-intensive commercial activity, primary healthcare, tourism (which has an employment multiplier effect, with each direct job creating 4 indirect jobs), and value-added local manufacturing.

Dr. Rania Al-Mashat reiterated that despite the uncertainty that prevailed during the meetings, countries showed keenness to cooperate with each other to overcome the challenges they face, which reflects the importance of constructive international cooperation in addressing the crises facing the global economy.