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Egypt Targets 5.7% Growth in Next FY

Egypt Targets 5.7% Growth in Next FY

Wednesday, 26 January, 2022 - 10:15
A general view of central Cairo, Egypt. (Reuters file photo)

Egypt will target economic growth of 5.7 percent and a primary surplus of 1.5 percent of GDP in the 2022-23 financial year, the finance ministry said on Tuesday.

The country is targeting an overall budget deficit of 6.1 percent in the next financial year, which begins in July.

The finance ministry added that the government raised its local wheat procurement price for the harvest beginning April 2022 by around EGP670 per ton from the price set a year prior as global wheat prices increased.

The ministry said Egypt, which is often the world's largest importer, allocated an additional EGP12 billion for wheat purchases in 2021 as global prices increased.

Meanwhile, Egyptian Petroleum Minister Tariq El-Molla said that Egypt expects to hold a bid round for oil and gas exploration before the end of June.

The ministry had said earlier that it targets $7 billion in direct foreign investment (FDI) for its oil and gas sector.

Molla was speaking at the American Chamber of Commerce forum on Monday to prepare for COP 27 under the title 'Building Momentum to COP27 of the United Nations: Enhancing Public-Private Cooperation on the Climate Challenge.'

He pointed out that the petroleum sector is currently implementing a national strategy to confront climate change and reduce emissions by 2050.

Egypt aims to reduce emissions in the energy field by expanding the uses of natural gas as a fuel and continuing its essential role as a low-emissions energy source during the transition period.

Molla explained that the energy subsidy reforms allowed allocations to be directed to the citizens entitled to it within the framework of initiatives to improve the standard of living.

He added that as a result of these reforms, Egypt's production of petroleum products increased by 30 percent from 2014 to 2020, which subsequently led to a decrease in carbon emissions.

Egypt's consumption of natural gas as a clean fuel rose 35 percent of the total consumption of fossil fuels during the same period.

The ministry plans to reduce the use of carbon by interacting with the initiatives of global partners and cooperating with the private sector and international companies to move towards the production of green hydrogen.

Molla pointed out that Egypt will continue to increase reliance on natural gas alternatives to some petroleum products.

He explained that natural gas is environmentally friendly and one of the essential options for the transition towards clean energy and reducing emissions.

Molla stressed the importance of natural gas as a transitional fuel in the transitional phase towards expanding the use of green energies and reaching zero emissions, which Egypt adopts in its current strategy by expanding reliance on natural gas.

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