Ambition to raise public sector economic involvement to 50%

Egypt aims to raise private sector contribution to economic activity to 50 per cent by 2025.

The government is constantly working to encourage development investment to improve living standards, public services, economic growth and job opportunities.

These remarks Minister of Finance Mohamed Maeet came during his meeting on Monday with British Ambassador in Cairo Gareth Bayley and representatives of English companies.

The government is on track to complete structural reforms in order to preserve the gains of the economic reform programme, which has rendered the economy more flexible and able to bear the shocks from internal and external challenges, such as the war in Ukraine and the coronavirus pandemic, the minister said.

The government is aiming for a growth rate of 5.7 per cent in gross domestic product (GDP) during fiscal year (FY) 2022-2023 and 6 per cent in FY 2024-2025, the minister added.

Government spending in FY 2022-2023 fiscal year will rise to LE2 trillion ($112 billion) from a projected LE1.8 trillion this year, Maeet said.

Revenues are forecast to increase to LE1.5 trillion from LE1.3 trillion in 2021-2022, resulting in a deficit of LE558.2 billion, up from LE487.7 billion, Maeet added.

The budget deficit is forecast at 6.1 per cent of GDP in 2022-2023, down from an estimated 6.2 per cent in the current financial year.

Interest payments on government debt will rise to LE690 billion in 2022-2023, equivalent to 45.4 per cent of all revenue, from LE579.58 billion this year.

Interest payments are expected to account for 44.6 per cent of government revenue this year.

The government will allocate LE90 billion for food subsidies, up from LE87 billion this year, he said, adding that average interest rate on government bills and bonds will rise to 14.5 per cent from 13.7 per cent, the minister said.

The comprehensive health insurance system will be in place despite global economic conditions in order to realise the dream of all Egyptians of free health within 10 years instead of 15, he added.

For his part, Bayley said Egypt has become a “main destination” for British investments in the Middle East.

He voiced his appreciation of the economic and structural reforms implemented by the Egyptian government despite the enormous challenges that cast a shadow on the economies of the entire world.