Maait: IMF's Vision of Egypt Optimistic Despite Global Uncertainty 

Finance Minister Mohamed Maait confirmed on Saturday that the IMF's vision of Egypt is optimistic despite uncertainty about the global economy, raising its growth estimate to 3.5% from 2%.

According to the recent report of the IMF's Fiscal Monitor for October 2020, Egypt's financial performance exceeded expectations in light of the outbreak of the corona pandemic, reflecting the positive results and successful economic reform praised by international institutions.

Maait pointed out that the fruitful economic reforms adopted by the Egyptian state and supported by the people, gave the economy a measure of resilience in the face of internal and external challenges.

"The state pursued a proactive policy of allocating 2% of gross domestic product (GDP)to support the sectors and groups most affected, in a way that contributed to mitigating shocks and supporting the national economy," the minister stressed.

The minister added that the IMF expects the rapid recovery of the Egyptian economy in the medium term, and high growth rates for pre-corona estimates in the long term.

IMF also expects a decline in the budget deficit to 5.2% of of GDP during the fiscal year 2022/23 and 3.8% of GDP during FY 2024/25, reflecting the ability of Egyptian financial policies to deal effectively with the pandemic.

He explained that, according to IMF estimates, the state’s general budget will achieve an initial surplus of 0.4% of GDP during the current fiscal year, rising to 2.1% during FY 2022/23.

He added that the IMF expects an increase in the public earnings during the current fiscal year by 20%, compared to 19.2% in the previous one, adding that total public expenditures are expected to drop to 25.4% in the current fiscal year compared to 28.4% last year.

Maait pointed out that the state's general budget recorded a slight initial surplus of EGP 100 million during the first quarter of the current fiscal year, despite the repercussions of the pandemic, meeting the needs of the health sector, pension funds, and greatly increasing government investments.

Maait explained that despite the negative effects of the pandemic on economic activity, the annual growth rate of expenditures reached 11% due to the increase in government investment allocations, social protection programs and increased spending on health and education.