Egypt's 2024-2025 Budget Increases by $59 Billion Amid COVID-19 and Economic Challenges: IMF, UAE Investments and Reforms
Egypt's 2024-2025 budget has been increased by approximately $59 billion due to the economic impact of the COVID-19 pandemic.
Minister of Finance Mohamed Maait explained that this additional funding is necessary to address inflation, enhance the standard of living, and meet citizens' developmental needs.
The budget will prioritize spending on health, education, and job creation to better serve individuals.
Egypt's economy has been negatively impacted by the crisis in Gaza, leading to a decrease in tourism and Suez Canal revenue, two major sources of foreign currency.
Due to a foreign currency shortage and rising inflation, the International Monetary Fund (IMF) increased its financial support to Egypt from $2.75 billion to $8 billion in March 2023.
This decision allowed Egypt to receive an immediate injection of about $820 million.
Additionally, in February 2023, the UAE signed an agreement with Egypt to invest $35 billion in Ras El-Hekma through a private consortium led by the Abu Dhabi Developmental Holding Co. This investment aims to boost Egypt's economy.
Egypt secured a large foreign investment deal, leading to reforms such as a 600 basis-point interest rate hike and a pledge to unshackle its currency with a devaluation.
S&P Global Ratings was encouraged by the financial support and lifted Egypt's economic outlook from stable to positive due to the anticipated easing of foreign currency shortages following the currency devaluation.
The budget will prioritize spending on health, education, and job creation to better serve individuals.
Egypt's economy has been negatively impacted by the crisis in Gaza, leading to a decrease in tourism and Suez Canal revenue, two major sources of foreign currency.
Due to a foreign currency shortage and rising inflation, the International Monetary Fund (IMF) increased its financial support to Egypt from $2.75 billion to $8 billion in March 2023.
This decision allowed Egypt to receive an immediate injection of about $820 million.
Additionally, in February 2023, the UAE signed an agreement with Egypt to invest $35 billion in Ras El-Hekma through a private consortium led by the Abu Dhabi Developmental Holding Co. This investment aims to boost Egypt's economy.
Egypt secured a large foreign investment deal, leading to reforms such as a 600 basis-point interest rate hike and a pledge to unshackle its currency with a devaluation.
S&P Global Ratings was encouraged by the financial support and lifted Egypt's economic outlook from stable to positive due to the anticipated easing of foreign currency shortages following the currency devaluation.
Translation:
Translated by AI
