Egypt's economy achieved positive growth rates in 2021/22: Finance minister to Japanese companies

MENA , Wednesday 21 Sep 2022

Finance minister Mohamed Maiit
Minister of Finance Mohamed Maiit at the event on 21 September, 2022. Photo courtesy of the Egyptian Cabinet


Egypt's economy achieved positive growth rates in FY 2021/2022, finance minister Mohamed Maait told representatives of Japanese companies operating in Egypt during a meeting on Wednesday. 

The meeting was organised by the Japanese Businessmen Association (JPA) and attended by Japanese Ambassador to Egypt Oka Hiroshi.

Egypt achieved a primary surplus in FY 2021/2022, amounting to 1.3 percent of GDP, said the minister, adding that the budget's overall deficit slashed to 6.1 percent.

He added that Egypt's debt-to-GDP ratio dropped to 87.2 percent in June 2022.

The figures reflect the resilience of the Egyptian economy among international financial institutions, Maait said. 

Egypt's mega projects have contributed to attaining a growth rate of 6.6 percent in FY 2021/2022, he pointed out. 

The projects also contributed to providing thousands of job opportunities, despite the ongoing global challenges arising from the fallout from the Covid-19 pandemic and the adverse impacts of the Ukrainian crisis, the minister added. 

"We still have promising and attractive opportunities for local and foreign investments in various fields," he affirmed.

The government wants to increase the private sector's participation in major projects and to simplify and facilitate customs procedures, Maait continued. 

"We are looking forward to increasing Japanese investments in Egypt," said the minister, noting that the volume of Japanese direct investments in Egypt increased by 52 percent during the last fiscal year.

The volume of trade exchange between the two countries reached about $1.5 billion in 2021, with a 13% increase on the year before, noted the minister.

Egypt is studying with Japan the issuance of green Samurai bonds during the coming period, he said, adding that the move came after Egypt successfully issued the first Samurai bonds in the Japanese market, valued at 60 billion Japanese yen, which attracted many Japanese investors.

The Japanese ambassador voiced appreciation to the support of the finance minister to Japanese business in Egypt, which contributes to creating an attractive business climate.

Egypt and Japan have cemented their economic ties over the past years, added the ambassador.

The finance minister's meeting with the Japanese businessmen contributes to removing the obstacles facing them in Egypt and encourages them to expand their investments, he added.

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