RIYADH: Egypt recorded its highest level of dollar resources in its history in July, amounting to approximately $8.5 billion, reflecting the improved performance of the country’s economic indicators.
Speaking at a press conference, Prime Minister Mostafa Madbouly explained that these resources, excluding hot money, were generated across various state sectors, with remittances from Egyptians abroad seeing a historic surge, highlighting the strong confidence and trust citizens have in the national economy, according to a statement.
He also confirmed that the government is finalizing a comprehensive roadmap outlining Egypt’s development and economic strategy through 2030, marking the country’s transition into the post-International Monetary Fund phase.
The developments come after US-based credit rating agency Fitch affirmed Egypt’s long-term foreign-currency issuer default rating at “B” with a stable outlook in April.
The rating was supported by the country’s relatively large economy, fairly high potential gross domestic product growth, and strong support from bilateral as well as multilateral partners.
Speaking to journalists, Madbouly said: “Let me remind you that when we were experiencing problems and instability in the exchange rate, remittances from Egyptians abroad were at their lowest levels. Today, when remittances from Egyptians abroad reach more than $3.6 billion per month, this figure reflects the confidence of Egyptians abroad in the stability and strength of the Egyptian economy.”
He added: “Consequently, our total resources, whether from exports, tourism, industry, and all services, in addition to remittances from Egyptians abroad, have reached $8.5 billion. This is the highest rate of dollar resources we have recorded in Egypt’s history in a single month.”
The prime minister went on to note that Egypt’s foreign exchange reserves have risen to $49 billion, while the annual inflation rate declined to 13.1 percent from 14.4 percent the previous month, signaling a notable enhancement in the country’s economic performance.
“The trade deficit in goods has also decreased by 25 percent, recording only $11 billion in the five-month period from January to May. This is a very significant figure, achieved not through reduced imports, but through increased Egyptian exports. This is all an improvement in the economy’s performance.”
He added: “As experts always say, rely on sustainable resources, which include increased exports, manufacturing rates, and increased remittances from Egyptians abroad.”
The prime minister also highlighted that while Suez Canal revenues have been impacted by exceptional geopolitical conditions, all other sectors generating sustainable resources are witnessing strong, unprecedented growth.
“Most importantly, we have a vision for the next five years, beginning in September. This vision will be presented for community dialogue and discussions with all experts and specialists, so that it can be completed before the end of 2025,” Madbouly said.
Post-IMF plan
The prime minister stated that the government’s full post-IMF plan will be presented to the Cabinet next week, with its key themes and goals to be unveiled at a press conference in early September as a draft of the national vision.
The draft will then be opened for a two-month public dialogue to gather feedback and engage stakeholders in discussions, with the document to be fully completed before the end of this year.
He emphasized that this vision is firmly rooted in Egypt Vision 2030, the outcomes of the National Dialogue, and a wide range of expert insights and sectoral proposals.
It also draws on existing operational strategies for key drivers of the Egyptian economy, including industry, tourism, agriculture, Information and Communications Technology, and various service sectors.
Madbouly also underlined that the vision is grounded in economic goals for the upcoming period and importantly includes multiple quantitative targets and specific figures aimed for achievement within the next five years.
Egypt’s economy is showing resilience despite global headwinds, with foreign investment and policy reforms helping offset volatile markets, Standard Chartered said in its latest outlook, published earlier in August.
