All indicators show improvement in Egypt's economy

The loan of the International Monetary Fund to finance Egypt’s economic reform program is a proof of confidence in the Egyptian economy, Prime Minister Sherif Ismail said on Saturday.

"All indicators show that Egypt’s economy is improving," Ismail said at the third Economic Conference, held by the Akhbar El Youm Press Foundation under the rubric "Egypt.. the way to the future.. breakthrough and challenges."

The prime minister asserted that the government’s program includes a vision to reduce unemployment and poverty rates and restore confidence in the national economy by depending on legislative reforms. It also includes social justice measures, sustainable development and national mega projects, he said. 

The program, which had been submitted to parliament, also pays attention to the small- and medium-sized enterprises (SMEs) and reducing the budget deficit, he added.

He said that the conference is an opportunity for interaction between officials, businessmen and specialists.

"Work is underway to restructure the public business companies and finalize the national mega projects," he said. 

The budget deficit is one of the major challenges facing the Egyptian economy as well as the public debt that rose from 95 percent to 100 percent of the national product, he noted.

The program’s first axis is aimed at facing unemployment that has already decreased to 12.5 percent, he said, adding that the second axis targets increasing the investments to 2 percent.

He added that the third axis is concerned with the social protection to support the poor and deliver the subsidies to the eligible.

“We are taking steps in the education field, which include building 30,000 classes," he said, pointing to the president’s directives to develop education.

"The fourth axis is concerned with the national projects and developing slums and unsafe areas," he said, pointing out that 63,000 housing units were built and sanitation projects were completed in all governorates.

He noted that the government is working on diversifying the renewable energy sources. 
The prime minister said on Saturday that the government program aims at increasing the state resources and reducing the budget deficit to 8 percent after three years.

It also targets reducing the public debt to 85-90 percent of the gross domestic product instead of 95-100 percent in the current budget, he said.

The plan also seeks to reduce the unemployment rate that has recently reached 12.5 percent, he added.

The government seeks to push forward the investments from the current 15 percent to 20 percent, in order to increase the growth to 6 percent, he noted.

The government offered a package of measures for the social protection, he said.

Source: MENA