Madbouli on IMF Review: Gov't Serious about Rationalizing Expenditures, Containing Inflation

PM Mostafa Madbouly said that the analysis of the report issued by the International Monetary Fund (IMF) regarding the third review carries many positives, and confirms that the Egyptian government is very serious about implementing the program of rationalizing spending and controlling inflation.

The Prime Minister added, during a press conference, that this week and the past few days have witnessed very good positive indicators, most notably the “Purchasing Managers’ Index” issued by the “Standard & Poor’s”, which exceeded, for the first time in about four years, 50 points to reach 50.4 points, carrying a positive message about the Egyptian economy based on the expectations of the private sector.

In light of this, the Prime Minister indicated that the future of the economy is promising, saying: We are keen through all the facilitations that we announce, and we will announce them today as well, to continue the positive vision regarding the path of the Egyptian economy.

He added: The Central Bank of Egypt also announced an increase in foreign exchange reserves, and the balances of Egyptian banks abroad witnessed an increase.

He pointed out that this was reflected in the increase in remittances from Egyptians abroad during the past month, stressing that everything related to foreign currency resources is proceeding well.

He explained that there was an expectation of an increase in inflation, and there has actually been an increase in the inflation rate by about 0.5%, as a result of the recent increase in fuel and petroleum product prices, but we are committed as a state according to our plan with the Central Bank to reduce inflation to less than 10% by the end of 2025, and this is what the state and all its institutions are working to achieve.

He said: In this context and to confirm the implementation of the state ownership and divestment policy, this week witnessed an important deal through the sale of 100% of the shares of the “Tamweely” company for a value of about 2.5 billion pounds.