IMF Hails Egypt's Success in Coping With Economic Challenges
Source: www.export-egypt.com 5/6/2018
International Monetary Fund (IMF) First Deputy Managing Director David Lipton 5/5/2018 hailed Egypt's success in coping with the economic challenges facing the country.
"The country had faced severe economic challenges. The response then was bold. It has been sustained, and it has succeeded.
The results are clear: macroeconomic stability and market confidence have been restored, growth has resumed, inflation has fallen, and the public debt ratio is expected to fall for the first time in nearly a decade", Lipton said in a preparatory meeting ahead of a high-level conference to be co-hosted by IMF and the Central Bank of Egypt (CBE) on promoting higher economic growth and jobs in Egypt.
He hailed the roles played by the Egyptian Ministry of Finance, CBE, and citizens, who positively responded when they were called to be patient during a difficult time.
"Exports and tourism are recovering, and the current account deficit is falling. Confidence has improved, and investment has picked up.
As a result, growth so far this year is at a 5.2 percent pace and inflation should decline to 11 percent," the IMF senior official noted.
He added that it was evident that the CBE monetary policy control has contained the effects of the currency's flotation, the increase in fuel prices, and the Value Added Tax (VAT).
"Subsidy reduction makes possible a more efficient allocation of resources across the economy — which will be an important element in unlocking Egypt’s economic potential", Lipton concluded.