According to a recent International Monetary Fund (IMF) report, Egypt’s GDP growth is strengthening and inflation is declining. Over the last year, the government has trimmed down the deficit, tourism and remittances are on the rise and the country’s foreign exchange reserves are being rebuilt – evidence of an economy back on track.
The launch of Egypt’s reform programme received strong support from both international and the local business community, as well as investors.
“This macroeconomic turnaround at home and the supportive global economic environment provide a unique opportunity to carry the reform momentum into areas that have historically been hard to tackle. Deep and lasting structural reforms are needed to create jobs as speedily as needed for Egypt’s growing population,” said Subir Lall, Head of the IMF team for Egypt.
As Egypt continues its economic transformation, the IMF believes that Egypt’s growing population needs about 700,000 new jobs every year, which is possible only if the private sector becomes the main engine of growth. “For that to happen, the state—which has a prominent role in the Egyptian economy—needs to step back from certain sectors and make room for the private sector to invest and grow,” according to the IMF.