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During the Cabinet meeting, which was held today, chaired by Dr. Mustafa Madbouly, Prime Minister, through the “video conference”, Minister of Finance, Dr. Mohamed Moit, gave a presentation on the preliminary estimates of the financial performance for the 2019/2020 period. Dr. Mohamed Moait, Minister of Finance, indicated at the beginning of the presentation that it is expected that the value of GDP will decrease by about 202 billion pounds compared to the estimates on which the budget was built, so that the Egyptian economy can achieve a real growth rate of 3.8% in 2019/2020 compared to 6% in estimates. The budget, as a result of the negative impact of the Corona virus pandemic on economic activity, noting that the Arab Republic of Egypt is one of the very limited countries that were able to achieve a positive real growth rate during the year 2020, and the rate of growth achieved by it is the highest in the world.
The Minister of Finance stated that the preliminary data for the performance of the fiscal year 2019/2020 indicate a decrease in the total deficit to 7.8% of GDP compared to 8.2% of GDP in the previous year despite the pandemic of “Corona”, which is due to the efforts made to manage Attitude and work to contain the impact of the Corona virus pandemic, along with slowing economic activity and pandemic-related initiatives on deficit rates and budget targets, as preliminary data indicate an initial surplus of 1.8% of GDP compared to a target of 2% of output, according to original budget estimates , Which is a very good result under the difficult and exceptional economic conditions associated with the Corona Virus pandemic.
He stressed that Egypt has maintained the estimates and rankings of all international rating institutions, despite the difficult circumstances that resulted from the Corona pandemic, which affected most of the world. The Minister of Finance added that the measures of financial control and achieving real growth rates contributed to the continuation of the downward trend of debt rates as a percentage of GDP, as it is estimated that the ratio of debt of the budget agencies to 86.2% of the output in June 2020 compared to 90.4% of the output in June 2019 and 108% Of the output in June 2017 and 95.1% in June 2014, indicating in this regard that Egypt is one of the very limited countries that has been able to reduce the debt ratio to the domestic product during 2019/2020, an achievement that reflects the effort made during the relevant year and previous years, as it reflects The success of the Egyptian government in dealing with the repercussions of the Corona virus pandemic in a balanced and proper manner.
During the presentation, the Minister of Finance stressed that despite the slowdown in economic activity due to the Corona virus pandemic, total budget revenues during the fiscal year 2019/2020 had achieved an annual growth rate of 2.3% compared to the previous fiscal year’s outcome, adding that preliminary data also indicated a rise The outcome of other revenues compared to the investigator in the previous year in light of the high surplus of economic bodies and public business sector companies, as well as the profits of the public banks transferred to the treasury, indicating the transformation of the oil sector to a positive and influential contributor to the public budget for the first time in years.
- The situation in Egypt