What growth for Egypt?

What growth for Egypt?

Egypt-IMFPlanning minister al-Araby claimed that the economy will grow by 3.8% in 2013, while Finance minister Al-Mursi al Sayed Hegazy presented in parliament measures geared towards saving more than $5 billion as part of their annual budget prospects.
Ministers are presenting prospects of their ministries for the 2013-2014 budget to the upper house of parliament and Minister al-Araby dwelled on the economic environment of the country which is undergoing one of its worst crisis. According to him, the Egyptian economy will begin registering growth as early as July, before rising to 3,8% by the end of 2012 fiscal year. His forecast are above the government’s 2,5%, while next year’s growth is estimated at 4%.
The country is running out of reserves and definitely needs money to save its economy. The finance minister, Al-Mursi al Sayed Hegazy, seems to come up with a saving plan to cut government expenditures. He presented a plan which evolved around tax increases, spending cuts and rationing the distribution of subsidized fuel using smart cards. The minister claimed that the rational distribution plan can help the government to save up to $5,25billion.
Other proposed plans are similar to what the IMF suggested during the negotiations for the $ 4,8billion loan. The implementation of some of those conditions led to demonstrations and widespread dissatisfaction of the Egyptian population. The minister didn’t say when the rationing for fuel will begin, but stated that only those who are in possession of the smart card from July 1st will be able to purchase fuel. The agricultural and fuel industries are not concerned by these measures.

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