A summary of last week’s major macroeconomic updates and indicators brought to you on one page for your convenience.
January 14 to January 20 Coverage:
The CBE’s MPC decided to leave interest rates on hold. Accordingly, the overnight deposit rate, the overnight lending rate, the rate of the main operation, and the discount rate remained unchanged at 12.25%, 13.25%, 12.75%, and 12.75%, respectively.
During the Cabinet meeting, Mohamed Maait, the Minister of Finance, noted the achievement of an initial surplus of around 2% in FY 2018/19, compared to an initial deficit of around 3.5% in FY 2015/16. Additionally, the ministry targets reaching an initial surplus of about 2% in the current FY.
The Ministry of Finance stated during the Cabinet’s meeting that the debt of the public budget apparatus to the GDP declined from 108% in June 2017 to 90% in June 2019.
The government’s debt ratio to GDP decreased from 83.8% in June 2019 to 78.3% in November 2019. Furthermore, it is expected to reach 83% in June 2020, according to the Cabinet.
Prime Minister, Moustafa Madbouly, declared during his meeting with a delegation from the World Bank that the Economic Reform Program has fostered the economic growth to reach 5.6%, the foreign reserves to be more than $45.5 billion, and the unemployment rate to drop to an unparalleled level of around 7.5% in Q2 2019.
EBRD remarked that Egypt took the lead in its investments after directing around EUR 1.2 billion in 2019, up from EUR 1.1 billion in 2018, according to elborsa news.
The MPMAR Facebook page mentioned that according to MAGNiTT, Egypt acquired the largest number of emerging companies’ agreements in the MENA region for 2019, with 25% of the total deals witnessed.
S& P Global has anticipated that Egypt’s public debt to GDP ratio will decline to around 80.5% in 2022, according to the MPMAR Facebook page.
The MPMAR stated in its report that Egypt has advanced 21 positions in the product markets axis and four positions in the labor market axis, according to Alborsanews.