Madbouly began his weekly address by referring to the report
published by the American credit rating agency Fitch on the Egyptian economy.
He explained that Fitch is one of the world’s leading rating agencies, closely
monitoring all indicators and figures that reflect economic performance across
countries. He added that the agency raised its forecast for Egypt’s economic
growth for the second time in two months, increasing its projection from 4.9
percent to 5.2 percent for the current fiscal year. He noted that this revision
came as a result of Egypt’s very strong performance in the first quarter, which
recorded a growth rate of 5.3 percent. He said that this improvement prompted
the agency to raise its full-year forecast to 5.2 percent, describing the move
as highly positive.
He added that Fitch attributed this expected increase to
rising investments, higher exports, and improvements in the overall economic
indicators, including the external sector, alongside the availability and
stability of the currency. He noted that the agency linked its forecast to a
gradual increase in Suez Canal revenues in the coming period. Consequently,
Fitch maintained Egypt’s rating at (B) with a stable outlook. The agency also
predicted that the Egyptian pound would continue to perform strongly against a
basket of foreign currencies.
Madbouly continued that these indicators are highly
significant and confirm what the government has repeatedly stated: the growth
occurring in Egypt’s economy is based on real productivity and is not driven by
temporary factors. He emphasized that the government has worked to ensure the
economy is driven by key sectors that operate regardless of seasonal factors.
Therefore, the growth is not linked to deals or speculative capital, but rather
reflects a genuine, healthy expansion of the real economy.
In a related context, the Prime Minister noted the recent
announcement by the Central Bank regarding an increase in foreign currency
reserves, which have now reached $50.216 billion. He added that this represents
a rise of approximately $145 million compared to last month. He highlighted his
ongoing meetings with the Central Bank Governor throughout the week,
emphasizing the full coordination between the government and the Central Bank
in all measures, aiming to reduce inflation. This reduction, in turn, is
expected to gradually lower interest rates and provide greater opportunities
for the private sector and Egyptian citizens to benefit from credit facilities.
Madbouly referred to the release of the November inflation
figures, which showed a decrease in inflation. He noted that there had been
concerns that the upward trend in inflation observed last month might continue.
Some opinions at the time linked the rise in inflation to fuel price increases.
However, a detailed analysis of the report showed that the primary reason for
the decline was a drop in prices of vegetables and basic food items. These
changes had a significant effect due to their relative weight in the inflation
basket, despite rising transportation costs caused by higher fuel prices.
He added that this confirms the timing and correctness of
the government’s decision to raise fuel prices. Although the measure faced
dissatisfaction from some segments of the population, it was implemented
according to careful calculations to achieve the targeted inflation rate by the
end of the year. The Prime Minister confirmed that the latest figures show that
the inflation rate in Egyptian cities reached 12.3 percent, compared to 12.5
percent in the previous month, while the annual inflation rate for the entire
country reached 10 percent.
Madbouly noted that previous press conferences had projected
that this figure would be achieved by the end of 2025 and the beginning of
2026. He acknowledged some skepticism at the time, but emphasized that the
results are now visible on the ground, confirming that the joint management of
the issue between the government and the Central Bank is proceeding
effectively.
The Prime Minister highlighted his meeting with the
International Monetary Fund mission earlier in the day. He stated that progress
is moving in a positive direction, and that the mission members are working to
finalize their review within the next two days. He said that, overall,
developments are heading in the positive direction everyone hopes for, and that
there will be good news on this matter, God willing.
Dr. Madbouly then discussed last week’s meeting with the
Minister of Finance, during which the second package of tax relief measures was
presented. He explained that during the Minister’s presentation to President
Abdel Fattah El-Sisi, the President directed the launch of a comprehensive
package of relief measures for various sectors in need of stronger support. The
Prime Minister mentioned his ongoing meetings with relevant ministers to
develop a comprehensive vision for decisions that will help accelerate economic
growth, in line with the President’s directives.
He added that the government team is making considerable
efforts to generate a wide range of ideas on this matter, which will be
presented to the President, with the expectation that they will be implemented
in the coming period, God willing.
Madbouly expressed his satisfaction with the opening of a
new factory, noting that he had inaugurated a new plant yesterday for a global
company specializing in the manufacture of electrical wiring harnesses. He
pointed out that the company plans further expansion within less than two
years, by establishing a large industrial complex equal in size to all of the
company’s existing factories built to date.
The Prime Minister emphasized that global companies do not
compromise when investing heavily in Egypt at this scale. He said this reflects
Egypt’s successful development path, the government’s decisions, and the
measures taken to improve the investment climate, which encourage these companies
to further increase their investments in the country.