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Egypt’s Finance Minister Says Cutting Inflation Is Priority 

Muslims arrive at a field during sunrise to offer special morning prayers to start the Eid al-Fitr festival, which marks the end of the holy fasting month of Ramadan in Abu Sir on April 10, 2024. (AFP)
Muslims arrive at a field during sunrise to offer special morning prayers to start the Eid al-Fitr festival, which marks the end of the holy fasting month of Ramadan in Abu Sir on April 10, 2024. (AFP)
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Egypt’s Finance Minister Says Cutting Inflation Is Priority 

Muslims arrive at a field during sunrise to offer special morning prayers to start the Eid al-Fitr festival, which marks the end of the holy fasting month of Ramadan in Abu Sir on April 10, 2024. (AFP)
Muslims arrive at a field during sunrise to offer special morning prayers to start the Eid al-Fitr festival, which marks the end of the holy fasting month of Ramadan in Abu Sir on April 10, 2024. (AFP)

The Egyptian government's main priority is to reduce inflation to within the central bank's target, Finance Minister Mohamed Maait said on Tuesday, adding that economic growth was expected to rise in the financial year starting in July to 4.2%, from 2.8% this year.

Maait also said the government aimed to sell more state assets, which would reduce the state's role in the economy, allow the private sector more ownership, increase productivity and generate revenue to reduce Egypt's debt.

Egypt's economy has been hurt over the last half year by the crisis in Gaza, which has slowed tourism growth and cut into Suez Canal revenue, two of the country's biggest sources of foreign currency. Revenue from the waterway has fallen by more than 60%, Maait said, speaking during the IMF Governor Talks series in Washington.

The challenges prompted the IMF to expand financial support to Egypt to $8 billion, while Egypt sharply devalued its currency, made its latest pledge to move to a flexible exchange rate, and struck a record $35 billion investment deal with a UAE sovereign wealth fund.

Inflation dipped to 33.3% in March from a record 38.0% in September, far higher than the central bank's long-standing target of between 5% and 9%.

Egypt generated growth over the last decade by financing giant state projects, including a new $58 billion capital in the desert, through a borrowing spree abroad that quadrupled its foreign debt.

The government hopes to lower interest rates to reduce interest payments on debt, Maait said. The central bank so far this year has raised its overnight interest rates by 800 basis points.

The government has put a limit of 1 trillion Egyptian pounds ($20.6 billion) on all public investment, including that of the military, Maait said. The private sector should make up at least 65-70% of the economy, he added.

"Giving the main role to the private sector to lead the country is in the benefit of the state. Why? Because we have close to 1 million young people coming to the labor market looking for jobs every year," Maait said.

"Who will be able to create that? The government cannot create more than 100,000 new jobs. An economy led by the private sector can create 900,000 - even more - jobs, but we have to give them the opportunity."

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World Bank Chief Sounds Alarm about Looming Jobs Crisis Even after War Ends

World Bank President Ajay Banga gives remarks during a forum held at the Atlantic Council building in Washington, D.C., US, April 7, 2026. REUTERS/Aaron Schwartz
World Bank President Ajay Banga gives remarks during a forum held at the Atlantic Council building in Washington, D.C., US, April 7, 2026. REUTERS/Aaron Schwartz
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World Bank Chief Sounds Alarm about Looming Jobs Crisis Even after War Ends

World Bank President Ajay Banga gives remarks during a forum held at the Atlantic Council building in Washington, D.C., US, April 7, 2026. REUTERS/Aaron Schwartz
World Bank President Ajay Banga gives remarks during a forum held at the Atlantic Council building in Washington, D.C., US, April 7, 2026. REUTERS/Aaron Schwartz

The Middle East war will dominate global finance officials' talks this week in Washington, but World Bank President Ajay Banga is sounding the alarm about a bigger, looming crisis: a huge gap in jobs for the 1.2 billion people who will reach working age in developing countries in the next 10 to 15 years.

At current trajectories, those economies will generate only about 400 million jobs, leaving a deficit of 800 million jobs, Banga told Reuters.

The former Mastercard CEO admits that focusing people on the long-term is daunting, given a series of short-term shocks that have buffeted the global economy since the COVID-19 pandemic, the most recent being the war in the Middle East.

He says he's determined to ensure that finance officials stay focused on those longer-term challenges like creating jobs, connecting people to the electricity grid and ensuring access to clean water. "We have to walk and chew gum at the same time. ‌Short-velocity cycle is what ‌we're going through. Longer velocity is this jobs circumstance or water," Banga said in ‌an ⁠interview taped on Friday.

WAR ⁠OVERSHADOWS OTHER CONCERNS Thousands of finance officials from around the globe will gather in Washington this week for the spring meetings of the World Bank and the International Monetary Fund under the shadow of the US-Israel war with Iran that threatens to slow global growth and jack up inflation. The extent of the hit to the economy will depend on the durability of a two-week ceasefire announced by President Donald Trump last week, just hours before promised strikes that Trump said would destroy Iran's civilization. The ceasefire has halted most attacks. But it has not ended Iran's effective blockade of the Strait of Hormuz, which has caused the biggest-ever disruption to global energy ⁠supplies, or calmed a parallel war between Israel and Iran-backed Hezbollah in Lebanon.

IMPROVING JOB CREATION

The ‌World Bank's governing body, the Development Committee, outlined plans to work with developing ‌countries to streamline policy and regulatory conditions that have hampered investment and job creation for years.

Discussions will touch on transparency around permits, anti-corruption, labor ‌law, land law, impediments to opening a business, logistics, better trade systems, and non-price barriers in trade, Banga said.

He is ‌upbeat that solutions can be found to help find employment - and dignity - for young people and create opportunities for private companies catering to their needs. "I don't know that you can ever get to a situation of utopia and everybody is taken care of in the coming 15 years. I would doubt that's going to happen, but if you don't do it, the implications are quite severe in terms ‌of illegal migration and instability," Banga said. United Nations data showed more than 117 million people were displaced worldwide as of 2025.

Banga said companies in developing countries themselves were starting ⁠to expand globally, including India's ⁠Reliance Industries and the Mahindra Group, and Dangote in Nigeria.

Banga said his discussions with officials in developing countries showed their interest in creating more - and better jobs - for the next generation.

In addition to jobs, water will be a big focus. The World Bank, in conjunction with other development banks, is set to announce a push to ensure that one billion more people have secure access to clean water, adding to existing initiatives to connect 300 million households in Africa with electricity, and to improve health care.

PULLING IN THE PRIVATE SECTOR

The World Bank focused on human and physical infrastructure required for the jobs creation push during last fall's meetings of the IMF and World Bank, and will continue the cycle with an emphasis on attracting private sector investment during this fall's meetings in Bangkok, Banga said. The bank identified five sectors that would benefit from investment and are not reliant on global trade or outsourcing from developed countries: infrastructure, agriculture for small farmers, primary health care, tourism and value-added manufacturing. Those sectors are less likely to be immediately affected by advancements in artificial intelligence, he said.

"The problem is, we can't do this alone. We've got to get this snowball to roll downhill, gathering a lot of snow as it goes along, to reach that amazing number of 800 million," he said.

Business

Gold Drops as Inflation Worries Linger on Failed US-Iran Talks

AFP a one-ounce gold bar is displayed at Witter Coins on October 07_ 2025 in San Francisco
AFP a one-ounce gold bar is displayed at Witter Coins on October 07_ 2025 in San Francisco
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Gold Drops as Inflation Worries Linger on Failed US-Iran Talks

AFP a one-ounce gold bar is displayed at Witter Coins on October 07_ 2025 in San Francisco
AFP a one-ounce gold bar is displayed at Witter Coins on October 07_ 2025 in San Francisco

Gold prices touched a near one-week low on Monday, pressured by a stronger dollar, while a surge in oil prices following failed US-Iran peace talks fueled inflation worries and dampened expectations for Federal Reserve interest rate cuts this year.

Spot gold was down 0.7% at $4,716.70 per ounce, as of 0445 GMT, its lowest level since April 7. US gold ‌futures for June ‌delivery fell 1% to $4,738.90. The dollar strengthened 0.4%, ‌while ⁠oil prices bounced ⁠back above $100 a barrel, as the US Navy prepared a blockade of the Strait of Hormuz that could restrict Iranian oil shipments, following the US and Iran's failure to reach a deal to end the war.

Iran's Revolutionary Guards responded by warning that military vessels approaching the Strait will be considered a ceasefire breach and ⁠dealt with harshly and decisively, reported Reuters.

"Ceasefire optimism has unwound ‌following the failure of the peace ‌talks, and the resulting push higher by the dollar and ‌oil prices has put gold on the back foot again," ‌said Tim Waterer, chief market analyst, KCM Trade.

Spot gold has fallen more than 11% since the US-Israeli war on Iran began on February 28. While inflation and geopolitical risks typically boost gold's appeal as a ‌hedge, elevated interest rates weigh on the non-yielding metal.

A stronger dollar also makes greenback-priced bullion more expensive ⁠for holders ⁠of other currencies.

"As soon as oil prices push back above $100, attention quickly turns to potential central bank rate hikes to curb inflation, and it is this interest rate outlook that is undermining gold's performance," Waterer said.

Traders now see little chance of a US rate cut this year, as higher energy prices threaten to feed into broader inflation and limit the scope for monetary easing.

Before the war in the Middle East began, there were expectations for two Fed rate cuts this year.

Among other metals, spot silver fell 2% to $74.35 per ounce, platinum lost 0.2% to $2,041.40, while palladium gained 0.7% to $1,530.80.

Business

Euro Zone Bond Yields Rise After US-Iran Talks Collapse

A car drives along a road during sunset near Berlin, Germany, 09 April 2026, a few days after Iran and the US announced a two-week conditional ceasefire to halt military operations. (EPA)
A car drives along a road during sunset near Berlin, Germany, 09 April 2026, a few days after Iran and the US announced a two-week conditional ceasefire to halt military operations. (EPA)
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Euro Zone Bond Yields Rise After US-Iran Talks Collapse

A car drives along a road during sunset near Berlin, Germany, 09 April 2026, a few days after Iran and the US announced a two-week conditional ceasefire to halt military operations. (EPA)
A car drives along a road during sunset near Berlin, Germany, 09 April 2026, a few days after Iran and the US announced a two-week conditional ceasefire to halt military operations. (EPA)

Euro ‌zone government bond yields rose on Monday after the United States and Iran failed to reach a peace deal, heightening concerns that higher oil prices could fuel inflation and support expectations for European Central Bank rate hikes.

Oil prices climbed above $100 a barrel ‌as the ‌US Navy prepared to blockade ‌the ⁠Strait of Hormuz, ⁠a move that could restrict Iranian oil exports, after marathon talks at the weekend between Washington and Tehran did not result in a deal to ⁠end the war.

Germany’s 10-year ‌government bond ‌yield rose 2.5 basis points (bps) to 3.07%. ‌It reached 3.13% in late ‌March, its highest since June 2011.

Two-year yields, which are more sensitive to expectations for inflation and rates, ‌were up 4 bps at 2.629%.

Money markets showed traders are ⁠pricing ⁠in a 50% chance of a rate rise at the ECB's April meeting, from around 25% late on Friday.

They are pricing in a rise in ECB deposit facility rate to 2.69% by year-end from 2% right now, compared with an expectation for 2.6% by year-end on Friday.