Egypt aims for a 4 percent growth by 2025, as announced by Minister Rania Al-Mashat. Despite challenges like declining Suez Canal revenues and geopolitical tensions, Al-Mashat assures resilience through economic reforms. Key measures include IMF collaboration focusing on fiscal discipline and investments in renewable energy, aiming for macroeconomic stability and competitiveness.
Egypt is projected to achieve a 4 percent growth by the end of 2025, according to Planning and Economic Development Minister Rania Al-Mashat, who spoke at the recent World Governments Summit. She provided an optimistic perspective on Egypt’s economic outlook despite global challenges, addressing concerns such as the significant drop in Suez Canal revenues and geopolitical tensions related to recent U.S. policies regarding Palestinians.
During the summit, panelists discussed the adversities the country has faced, yet Al-Mashat reassured that Egypt’s resilience and strategic economic reforms are driving its growth. “At the outset, macroeconomic stability is a necessary condition for growth and private sector engagement,” she stated, indicating the importance of stability for attracting investments.
Al-Mashat outlined Egypt’s collaboration with the International Monetary Fund, which began in March 2024. The focus includes fiscal tightening, reduction of domestic debt, disciplined public investments, and stringent monetary policies to manage inflation. These efforts have resulted in improved macroeconomic conditions, as indicated by a 3.2 percent growth rate in the first quarter of the 2024/2025 fiscal year, particularly in manufacturing efficiency.
She emphasized the need for structural reforms alongside macroeconomic stability to enhance competitiveness and foster private sector participation. Additionally, Egypt has raised nearly $4 billion in renewable energy investments over the past year, establishing itself as a key player in the regional energy market.
“Agility and resilience are key,” Al-Mashat noted, projecting a 4 percent growth rate despite headwinds from global inflation and shifts in monetary policy. Furthermore, she highlighted Egypt’s proactive approach to financing development through various means essential for the country’s economic sustainability, including domestic resource mobilization and initiatives for a green economy.
Egypt is on track to achieve a 4 percent growth rate by 2025, driven by strategic economic reforms and resilience amidst global challenges. Minister Al-Mashat outlined the importance of macroeconomic stability and structural reforms while emphasizing the country’s investments in renewable energy. The collaboration with the IMF and proactive financing strategies indicate a commitment to sustainable economic development, positioning Egypt for future growth.
Original Source: www.arabnews.com
