World Bank: Egypt’s economic reforms helpful in overcoming int’l crisis

The World Bank stressed that the economic reforms carried out by Egypt will help overcome the effects of the current international crisis.

The World Bank said “Macroeconomic and structural reforms undertaken by Egypt to start addressing entrenched economic
and social problems are supporting the country in navigating the current difficult landscape. Reforms since 2014 to ease macroeconomic imbalances, enhance the performance of the energy sector, and mobilize financing enabled the country to enter the successive crises with relatively improved fiscal accounts and ample foreign reserves. Important institutional reforms were undertaken to improve the business environment, including on the trade facilitation and the business exit/restructuring fronts.”

Further, steps were taken toward increasing private sector participation and private capital mobilization in certain sectors (such as Solid Waste Management), and the government has announced plans to begin reforming the role of the State in the
economy, as part of the efforts to boost private sector activity and job creation. In tandem, social protection and human development initiatives providing targeted support, such as the Takaful and Karama cash transfer programs, are now being scaled up gradually to partially shield the most vulnerable groups from the impact of
rising prices.

This came as the cabinet information center reviewed the World Bank report issued in December 2022 under the title “Egypt Economic Monitor, Fall 2022: Strengthening Resilience through Fiscal and Education Sectors Reforms.”

Amidst precarious global economic conditions, Egypt —among many emerging markets— is facing headwinds that are aggravating pressures on external and fiscal accounts, the bank’s report said.

For Egypt, these global headwinds are translating into higher domestic prices, and pressures on the budget. The Russia-Ukraine conflict also triggered abrupt and large-scale portfolio investment outflows, it added.

Thus, following the strong rebound of 6.6 percent in FY2021/22, growth is expected to slow down to 4.5 percent in FY2022/23, before starting to inch up thereafter.