Egypt mulls impact of Middle East unrest on economy

The Egyptian Council for Financial and Monetary Policies on Monday reviewed potential scenarios for dealing with the current events in the Middle East in light of the ongoing war in Gaza and Lebanon, and the implications of these events on the country’s economy.

Prime Minister Moustafa Madbouli emphasised that the uncertainty imposed by the ongoing regional wars makes it essential for the government to study various scenarios, which is something they are already working on in collaboration with the central bank.

Madbouly also stated that the government is continuing its work on the state privatisation programme, with significant announcements expected soon regarding the public offering (IPOs) of valuable state assets, as part of the privatisation programme being implemented in cooperation with the International Finance Corporation (IFC).

The Prime Minister reiterated the government’s commitment to advancing the plan to accelerate the downward trajectory of debt, affirming that significant positive results have been achieved in this area over the past few months, a key confidence indicator recognised by global financial institutions.

Egypt’s external debt reached $152.9 billion by the end of the second half of FY23/24, down nine per cent from $168 billion in the previous half, according to a data released by the Central Bank of Egypt (CBE).

Attribution: Egyptian Cabinet

Subediting: M. S. Salama