CAIRO: Egypt’s economy grew 5.6 percent in the 2018/19 fiscal year and is “on the right track” as it completes IMF-backed reforms, Prime Minister Mustafa Madbouli said on Wednesday.
The budget deficit came in at 8.2 percent of GDP, he said, which was slightly below an official forecast of 8.4 percent.
Egypt is emerging from a three-year economic reform program tied to a $12 billion loan from the International Monetary Fund.
Madbouli said Egypt’s primary surplus stood at 2 percent for the fiscal year, which ended in June, and also pointed to a recent drop in inflation as positive signs. Economic growth was up from 5.3 percent in 2017/18 and in line with a government forecast.
“At the same time, it induces us to complete the implementation of reforms and the efforts exerted to achieve the targets for the new fiscal year,” Madbouli said in a statement said.
Egypt has been praised by international lenders for swift reforms implemented since 2016, though austerity measures and inflation have left many Egyptians struggling to get by.
The reforms included a sharp devaluation of the currency, the introduction of value-added tax and the elimination of subsidies on most fuel products.
Headline annual inflation dropped to 9.4 percent in June from 14.1 percent the previous month, though it is expected to rise over the rest of the summer as the impact of the latest round of fuel subsidy cuts kicks in.
Egyptian economy on right track after 5.6% growth in 2018-2019: prime minister
Egyptian economy on right track after 5.6% growth in 2018-2019: prime minister
- Egypt is emerging from a three-year economic reform program tied to a $12 billion loan from the IMF
- Egypt has been praised by international lenders for swift reforms implemented since 2016
Egypt’s Suez Canal, Namibian Ports Authority sign MoU to propel port development, training
RIYADH: Egypt’s Suez Canal Authority and the Namibian Ports Authority have signed a memorandum of understanding amid efforts to propel cooperation in development and training.
The agreement aims to exchange expertise and enhance bilateral cooperation in several areas, most notably marine construction, the sale and leasing of marine units, and advanced training through the Suez Canal Authority’s academies, according to a statement.
This is supported by figures from the Suez Canal Authority, which reported revenues of $1.97 billion from 5,874 ship transits since early July, representing a 17.5 percent year-on-year increase, chairman Osama Rabie said during a recent meeting with an International Monetary Fund delegation.
It also aligns well with Rabie’s further forecast that the canal’s revenues would improve during the 2026/2027 fiscal year to around $8 billion, rising to approximately $10 billion the following year, according to a statement issued by the authority.
The newly released statement said: “Rabie affirmed the authority’s readiness for fruitful and constructive cooperation with the Namibian Ports Authority, given the expansion of the entity’s international projects and its efforts to open new markets and engage with the African continent.”
“The chairman explained that the Suez Canal Authority’s efforts succeeded in developing and reopening the Libyan port of Sirte after 14 years of closure, marking a successful start to international projects with friendly and sister nations,” it added.
The chairman instructed that all necessary support and procedures be put in place to initiate practical cooperation on multiple projects, highlighting that the authority offers a comprehensive system for maritime and logistics services through its shipyards and subsidiaries.
For her part, Nangula Hamunyela, chairperson of the Namibian Ports Authority, voiced her enthusiasm for collaborating with the Suez Canal Authority on advancing Namibia’s ambitious port development plan, home to the largest ports in West Africa.
She stressed that this partnership highlights the strong relationship between Egypt and Namibia and will help further deepen bilateral ties.
Hamunyela further highlighted that the Suez Canal Authority’s advanced technology and vast expertise across multiple sectors will play a key role in supporting and speeding up development efforts in Namibian ports, reducing dependence on foreign expertise and technology from outside the region.
Egypt’s Suez Canal generated a total of $40 billion between 2019 and 2024 and remains the country’s most important source of foreign currency.
