Minister of Finance Mohamed Moeit said that Egypt aims to reduce the budget deficit to 7.2% of GDP, achieve a GDP growth of 6% in fiscal year (FY) 2019/20, and decrease unemployment to 9.6%, as well as inflation and trade deficit.
Moeit’s remarks came during his participation in the G20 Finance Ministers and Central Bank Governors meeting which started on Saturday in the western Japanese city of Fukuoka.
He added that the authorities also target an unemployment rate of 9.6%, as the government focuses in two directions, increasing public investment spending to create more jobs, as well as increasing spending on human development, especially in health and education sectors. In parallel, the government is also working to stabilise its fiscal, tax, and customs policies in order to encourage private investment and attract more foreign investment.
Furthermore, the improvements in the economy can be witnessed in the appreciation of the Egyptian pound against various foreign currencies and the increase in the size of the foreign reserves to close to $45bn, the minister stressed.
Egypt has been working hard to reduce the public debt to the GDP ratio, successfully reducing debt level from 108% of GDP to 93% of GDP, and is expected to reach less than 80% by the end of FY 2021/22.
On the other hand, a joint communique by the finance ministers and central bank governors from the G20 economies was issued to conclude their meetings, pointing out the risks to the world economy from trade tensions without directly referring to the trade dispute between the United States and China.
The meeting is being chaired by Japan’s Deputy Prime Minister and Finance Minister, Taro Aso, and the Bank of Japan Governor, Haruhiko Kuroda.