Egypt Targets 5.5% GDP Growth in FY2023/24 

Finance Minister Mohamed Maait. (Facebook)
Finance Minister Mohamed Maait. (Facebook)
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Egypt Targets 5.5% GDP Growth in FY2023/24 

Finance Minister Mohamed Maait. (Facebook)
Finance Minister Mohamed Maait. (Facebook)

Egypt is targeting GDP growth at 5.5% in fiscal year 2023/24, its Finance Minister Mohamed Maait said in a circular on Saturday.  

The circular covers the preparations for the state’s draft general budget for the FY2023/24, which begins in June 2023 and ends in June 2024. 

The minister added that despite the unprecedented global economic challenges, Cairo is seeking to achieve a sustainable primary surplus of about 2% on average and to put deficit and debt rates on a downward path.   

He stressed that Egypt also aims at narrowing the budget deficit to 5% in the medium term, while targeting a decline in the government indebtedness rate to less than 80% of the GDP by late 2027.   

The Finance Ministry said the circular is being published in light of the extraordinary circumstances witnessed by the global economy that are placing extreme pressure on the budgets of countries, including Egypt. The impact has been the unprecedented rise in the prices of goods and services as a result of the high financing costs.  

Maait vowed that the global challenges will not hinder the process of building the new republic, the foundations of which were laid by President Abdel Fattah al-Sisi, to help improve the standard of living and improve the services provided to citizens.   

The budget also targets the fair distribution of budgetary appropriations while taking into account the response to the requirements of growth and development for all regions and segments of the society.   

According to Maait, the budget focuses on development, expanding the social protection network, and addressing the effects of international and local economic challenges in a way that eases the repercussions of global inflation on citizens as much as possible.  

It underscores the importance of completing the process of building the new republic, which is based on the optimal utilization of state resources, achieving equal opportunities, and completing the Decent Life Initiative. 

The government is committed to meeting the citizens’ needs, reducing the impact of inflation, and achieving economic goals by maximizing financial discipline and the competitiveness of the economy, improving the business environment and simplifying procedures to stimulate investment and achieve high and sustainable growth rates by boosting productivity and export rates, the minister continued. 

It targets promoting economic development, focuses on small and medium enterprises and manufacturing industries, expanding the trend towards green transformation, attracting more clean investments by making optimal use of strong infrastructure, and supporting structural reforms so that the private sector can lead development and provide more job opportunities. 



Russia's Central Bank Holds Off on Interest Rate Hike

People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
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Russia's Central Bank Holds Off on Interest Rate Hike

People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)

Russia's central bank has left its benchmark interest rate at 21%, holding off on further increases as it struggles to snuff out inflation fueled by the government's spending on the war against Ukraine.
The decision comes amid criticism from influential business figures, including tycoons close to the Kremlin, that high rates are putting the brakes on business activity and the economy.
According to The Associated Press, the central bank said in a statement that credit conditions had tightened “more than envisaged” by the October rate hike that brought the benchmark to its current record level.
The bank said it would assess the need for any future increases at its next meeting and that inflation was expected to fall to an annual 4% next year from its current 9.5%
Factories are running three shifts making everything from vehicles to clothing for the military, while a labor shortage is driving up wages and fat enlistment bonuses are putting more rubles in people's bank accounts to spend. All that is driving up prices.
On top of that, the weakening Russian ruble raises the prices of imported goods like cars and consumer electronics from China, which has become Russia's biggest trade partner since Western sanctions disrupted economic relations with Europe and the US.
High rates can dampen inflation but also make it more expensive for businesses to get the credit they need to operate and invest.
Critics of the central bank rates and its Governor Elvira Nabiullina have included Sergei Chemezov, the head of state-controlled defense and technology conglomerate Rostec, and steel magnate Alexei Mordashov.
Russian President Vladimir Putin opened his annual news conference on Thursday by saying the economy is on track to grow by nearly 4% this year and that while inflation is “an alarming sign," wages have risen at the same rate and that "on the whole, this situation is stable and secure.”
He acknowledged there had been criticism of the central bank, saying that “some experts believe that the Central Bank could have been more effective and could have started using certain instruments earlier.”
Nabiullina said in November that while the economy is growing, “the rise in prices for the vast majority of goods and services shows that demand is outrunning the expansion of economic capacity and the economy’s potential.”
Russia's military spending is enabled by oil exports, which have shifted from Europe to new customers in India and China who aren't observing sanctions such as a $60 per barrel price cap on Russian oil sales.