Egyptian Finance Minister Mohamed Maait reaffirmed that his country is looking to raise the private sector contribution to economic activity to 50% by 2025.
Maait said that Egypt’s government is constantly working to encourage development investment to improve living standards, public services, economic growth, and job opportunities.
Maait’s remarks came during his meeting on Monday with British Ambassador in Cairo Gareth Bayley and representatives of English companies.
“The government is on track to complete structural reforms in order to preserve the gains of the economic reform program, which has rendered the economy more flexible and able to bear the shocks from internal and external challenges, such as the war in Ukraine and the coronavirus pandemic,” the minister said.
“The government is aiming for a growth rate of 5.7% in gross domestic product (GDP) during fiscal year (FY) 2022-2023 and 6% in FY 2024-2025,” he added.
Government spending in FY 2022-2023 will rise to LE2 trillion ($112 billion) from a projected LE1.8 trillion this year, Maait said, adding that revenues are forecast to increase to LE1.5 trillion from LE1.3 trillion in 2021-2022, resulting in a deficit of LE558.2 billion, up from LE487.7 billion.
The budget deficit is forecast at 6.1% of GDP in 2022-2023, down from an estimated 6.2% in the current financial year.
Moreover, the government will allocate LE90 billion for food subsidies, up from LE87 billion this year, he said, adding that the average interest rate on government bills and bonds will rise to 14.5 % from 13.7 %.
The Minister said that the comprehensive health insurance system will be in place despite global economic conditions to realize the dream of all Egyptians of free health within 10 years instead of 15.
For his part, Bayley said Egypt has become a “main destination” for British investments in the Middle East.
He voiced his appreciation of the economic and structural reforms implemented by the Egyptian government despite the enormous challenges that cast a shadow on the economies of the entire world.