Egypt’s Prime Minister Mostafa Madbouly reviewed, on Sunday, a report on the Egyptian economy prepared by the International Monetary Fund (IMF).
The report, presented by Minister of Finance Mohamed Maait, also reviewed the measures taken by the Egyptian government to combat the repercussions of the novel coronavirus (COVID-19) crisis.
Maait indicated that the report said, “The government provided the largest amount of protection and support measures to the most vulnerable groups and the most affected economic sectors, as well as working to enhance the principle of transparency and disclosure in the face of the crisis through continuous communication.”
He added that there are still risks and challenges, especially as the second wave of the pandemic increases the uncertainty about the pace of the domestic and global recovery.
Maait said that the IMF report praised the Egyptian government’s provision of assistance to individuals and companies most affected by the pandemic. This includes support for the informally employed as well as small- and medium-sized enterprises (SMEs). It also covers the directing of aid and support to the most affected sectors of Egypt’s economy, such as tourism, civil aviation, and industry.
The minister referred to the report’s review of the allocation of additional resources, to ensure adequate compensation for workers in the public health sector, and increasing teacher salaries and allowances. The latter point would advance education as one of the pillars of human development and economic growth.
In its report, the IMF praised the smooth progress of implementing the state’s general budget to achieve the objectives of the economic reform programme for fiscal year (FY) 2020/21.
The current budget provides sufficient flexibility to accommodate any additional support for the first-care groups during the second wave of the pandemic, while preserving the programme’s financial targets.
The IMF also praised the Egyptian Government’s efforts in moving towards sustainable development and preserving the environment. This can be seen through its success in issuing the first green bonds worth $750m, which went towards financing adaptation plans and reducing the effects of climate change.
The report indicated that these reforms are expected to enhance Egypt’s green development and create more job opportunities in the medium term.
