Al-Saeed: The structural reform program targets the sectors of agriculture, industry, communications and information technology
During the cabinet meeting, Dr. Hala Al-Saeed, Minister of Planning and Economic Development, reviewed the expected scenarios for the performance and indicators of the Egyptian economy during the coming period.
Al-Saeed referred to the medium-term economic growth scenarios, which included the most prominent goals that the government seeks to achieve during the next stage, which are inclusive and sustainable economic growth, and achieving high levels of decent employment, pointing out that this requires achieving high levels of balanced investment, in addition to targeting Promising sectors with high added value through the structural reforms program.
The Minister of Planning stressed that investment is the main engine of growth, especially in middle-income countries, and the positive impact of investment on short- and long-term growth extends; With regard to the impact of fiscal stimulus packages on growth rates.
She said that the stimulus packages, estimated at about 100 billion pounds, allocated to confront the Corona pandemic, for example, contributed, along with other presidential and central bank initiatives, to raising growth rates by about 0.3 percentage points in the fiscal year 2019-2020, and about 0.6 percentage points in the year 2020- 2021.
The Minister stressed the importance of identifying priority sectors when developing expected scenarios for economic growth; The indicators showed that the significant contribution to economic growth during the past decade was no longer limited to traditional sectors of high relative weight such as agriculture and industry, but also included promising sectors that achieved high growth rates such as the telecommunications sector and some activities related to the transport and storage sector.
The minister added: The agriculture, transport, trade and communications sectors are among the least volatile sectors, and therefore the structural reform program mainly targets the agriculture, industry, communications and information technology sectors, as they are sectors that comply with a number of targeted criteria, which are represented in achieving a high growth rate, in addition to their relative contribution to growth. It is characterized by the steady increase, as well as the stability and sustainability of growth in these sectors, with its ability to generate decent job opportunities and reduce poverty rates.
The expected scenarios on economic growth, according to what was presented by Dr. Hala Al-Saeed, indicate that there is a “baseline” scenario, which assumes a cautious growth pattern in the medium term with the continuation of the repercussions of the Corona pandemic, while another scenario, which is the “optimistic scenario”, assumes the success of the structural reforms program. sector and a faster recovery from the repercussions of the Corona pandemic, stressing that all estimates are reviewed on a monthly basis in light of the continuation of these repercussions.
The Minister of Finance, Dr. Mohamed Maait, pointed to the most important goals for finance during the coming period, including working to return the downward path of the government debt ratio to the domestic product, starting from the current fiscal year 2021-2022.
The article the government discusses the expected scenarios for the performance of the Egyptian economy was written in Al Borsa newspaper.