Egyptian media personality and member of parliament Mustafa Bakri has stated that while Egyptians may not currently feel the effects of economic improvement, the country is on track to build a strong economy in the future. Bakri cited a rise in the strategic reserve to over $57 billion and a growth rate of 5.1% as indicators of positive change. He made these comments during his presentation of the program "Haqiqat wa Asrar" on the "Sada al-Balad" channel.
Bakri emphasized that the current improvement may not be immediately noticeable to citizens, but it will have a significant impact in the long run. He stressed the need for the results of financial and economic reform to be reflected in the lives of citizens, particularly those with limited income and the middle class. According to Bakri, successful financial and economic reform has been praised by the International Monetary Fund and several international institutions.
The Ministry of Finance has announced that the overall budget deficit has decreased to 5.8% of the gross domestic product during the 2025-2026 fiscal year, compared to 7.1% in the previous fiscal year. Bakri highlighted that these numbers demonstrate a positive trend in the economy. He also noted that the primary surplus, which represents the excess of state revenues over expenditures excluding debt interest, has reached 4.9%.
Bakri pointed out that while the economic growth rate has reached 5.1%, the continued overall deficit remains a challenge, particularly with the rising cost of debt servicing. He explained that the primary surplus indicates an increase in state revenues over expenditures, excluding debt interest, while the overall deficit includes these interest payments, reflecting the burden on the budget.
The Ministry of Finance aims to extend the maturity of debts, diversify funding sources, and broaden the investor base to alleviate the pressure resulting from the concentration of significant financial obligations within short periods. Bakri emphasized that the improvement in economic indicators should be accompanied by a tangible improvement in living standards.
He called for addressing corruption, correcting errors, and expressing hope that the middle class will regain its ability to cope with economic burdens. Bakri's comments come as Egypt continues to implement economic reforms aimed at achieving sustainable growth and stability.
The country's economic indicators have shown positive trends, with a growth rate of 5.1% and a strategic reserve of over $57 billion. The Ministry of Finance's efforts to reduce the budget deficit and improve the business environment are expected to contribute to a strong economy in the future.
Key points
- Egypt's economy is expected to be strong in the future despite current challenges
- The country's strategic reserve has risen to over $57 billion
- The growth rate has reached 5.1% and the primary surplus has reached 4.9%
