Egypt estimated the cost of the Ukrainian war on its budget at 130 billion pounds.
The Egyptian Prime Minister, Dr. Mostafa Madbouly, said that it is clear that The economic crisis will last longer than expected.
He added that the government will enhance the role of the private sector, reduce debt rates, enhance social protection measures, and localize the Egyptian industry.
He continued, “The current crisis has not occurred in more than 80 years, and the loss has been estimated at $12 trillion, which is 5 times the GDP of the entire continent of Africa and 4 times the European countries, and global financial institutions have lowered the expectations of global growth rates.”
He pointed out that all these conditions affected the movement of production and global trade, and they estimated trade losses at regarding $300 billion. In light of all these conditions, global debt rates have risen and 60% of the poorest countries are in a critical condition.
reduce indebtedness
The Egyptian Prime Minister said that his country aims to reduce the debt to regarding 75% of GDP by the end of June 2026, and reduce the budget deficit to regarding 5% of GDP in the next four years.
He added that Egypt aims to achieve a primary surplus of regarding 2% of GDP annually, and aims to reduce the cost of borrowing and government debt service to 6% of GDP in 2025-2026.
inflation crisis
He also referred to the unprecedented inflation worldwide, which reached 9%, and all of these conditions put great pressure on all countries, especially the developing countries.
On the level of commodities, the cost of wheat rose to Egypt, and the Egyptian Prime Minister said that Egypt’s strategic reserve of wheat would suffice for four months.
He added in a press conference that oil reserves are sufficient for 5.6 months, and rice reserves are sufficient for 8.7 months.
With regard to oil, Madbouly said: “Egypt imports 100 million barrels per year. We used to pay $6.7 billion, which increased to $11.2 billion.”
According to Madbouly’s statements, Egypt seeks to “control the population increase to reach less than 120 million people in 2030… Population jumps require the provision of one million jobs annually, and the state has entered to increase investments to create job opportunities in light of the decline in private sector investments.”
In order to enhance the role of the private sector, Madbouly pointed out, “the announcement of a program for the participation of the private sector in the state’s assets with a value of 40 billion dollars within 4 years.”
