Despite lower growth expectations for most of the world’s economies, the International Monetary Fund expected Egypt to achieve the fourth-highest growth rate among the world’s most important economies by 2023.
The Egyptian Cabinet Media Center stated that “Through the implementation of the economic reform program and the application of a balanced fiscal and monetary policy, the Egyptian state was able to cope with and adapt to global challenges and crises, as well as develop appropriate solutions to contain and mitigate their negative impacts. impact on the Egyptian economy at a time when efforts to improve the working environment and investment, support manufacturing sectors and expand social protection initiatives have made Egypt one of the countries that have been able to achieve high growth at a time when global economic growth is slowing, which was reflected in the optimistic view of the main international institutions on the Egyptian economy.
And a report released by the Egyptian Cabinet Media Center on International Monetary Fund expectations noted that “The International Monetary Fund maintained its 2021/2022 growth forecast for the Egyptian economy, thus exceeding the world average growth rates with a growth rate of 5.9% in forecast for July 2022, which is in line with the same fund’s expectations for the growth rate of the Egyptian economy in April of that year.
The report refers to the International Monetary Fund’s “expectations for growth in July 2022 compared to April 2022” as “the Fund cut its forecast for global growth by 0.4 percentage points to a record 3.2% from 3.6 %, as well as lowering its expectations for growth in advanced economies by 0.8 percentage points, to 2.5%, from 3.3%.
The report lists the Fund’s expectations for July 2022 compared to April 2022 as “The Fund lowered its growth expectations for emerging market and developing economies by 0.2 percentage points to a record 3.6% from 3. 8%, while lowering their expectations for the growth rate of the Middle East and North Africa by 0.1 percentage points to register 4.9%, down from 5%.
The report also reveals IMF growth expectations for 2023 as it “expected Egypt to grow at 4.8%, India at 6.1%, Pakistan at 3.5%, and Iran with a rate of 2% in 2022/2023.” Monitoring the Fund’s expectations for the growth rates of the world’s most important economies in 2023, as it is expected to “record 5.2% in Indonesia, 5% in the Philippines, 4.7% in Malaysia, 4.6% in China, 4% in Thailand, 3.9% in Kazakhstan and 3.7% in Saudi Arabia, 3.5% in Turkey, 3.2% in Nigeria, 3% in Argentina, 2.2% in Australia and 2.1%. % in South Korea.
The fund expected Spain and Poland to grow at a record 2% in 2023, as well as 1.8% in Canada, 1.7% in Japan, 1.4% in South Africa, 1.2% in Mexico, 1 .1% in Brazil and 1% in France, the Netherlands and the US, 0.8% in Germany, 0.7% in Italy and 0.5% in the UK.
In this regard, the Fund expects that “Russia will record a contraction of 3.5%, given that the selected countries account for approximately 83% of global GDP.”
The report touched on the most salient comments from the International Monetary Fund on the state of the Egyptian economy since the onset of the crisis and how to deal with it, noting that in March 2022 the expansion of social protection to those who deserve it and the application of flexibility in price dynamics. Exchange in light of the impact of the consequences of the crisis on the economy.
According to the report, in April 2022, the Fund expects “a reduction in the high debt ratio of the Egyptian economy in the medium term based on success in achieving a high primary surplus that will reach 2% of GDP.” in April 2022, he confirmed that “he has a successful track record”. Working very closely with Egypt,” stressing that “Egypt is currently taking serious steps to maintain its financial stability and continue reforms. He also expected the unemployment rate to drop to 6.9% during 2022 and 2023 compared to 2021 when the unemployment rate hit 7.3%.”
According to the report, in July 2022, the International Monetary Fund team thanked the Egyptian state for frank and constructive discussions after the IMF team and the Egyptian authorities had fruitful discussions on policies and economic reforms to be supported in the coming period.
The Fund emphasized in July 2022 that “Egypt and the IMF program have achieved the main goal of maintaining economic stability in recent years”, explaining that “to move forward, it is not necessary to make decisive progress through deeper reforms to promote private sector development and improve governance”, the report says.
The report included the most notable comments from the Fund’s Global Economic Crisis Report, stating that “a bleaker and hazier atmosphere in the global economy will continue into 2022 after an initial recovery during 2021 as risks began to ease.” materialize locally and are accompanied by a reduction in world production.” The fact that the Fund mentioned lower growth expectations in major advanced crisis countries due to high food and energy prices, in addition to explaining high debt rates as global conditions indicate that debt has reached critical levels in emerging emerging market and developing countries.
The fund also confirmed that “the global food crisis has worsened, especially with export restrictions in many countries and inflation in most grain prices worldwide”, expressing its expectations that “global trade growth in 2022 and 2023 will slow to a high pace.” reflecting the decline in global demand and the challenges” facing global supply chains.
Source: Egyptian Cabinet Media Centre.