Egypt’s economy has been in crisis since the years following the Arab Spring, as domestic turmoil, terrorist attacks as well as an exploding population have hit valuable sectors like tourism as well as hurt the public sector’s ability to provide jobs as well as traditional benefits. In 2016, the IMF agreed to a three-year, $12 billion bailout program to support the country of 0 million.
“Big stabilization in Egypt is actually going to give rise to benefits for the people,” Lagarde stressed. “as well as in all circumstances, whether which’s in Egypt, Jordan, Tunisia as well as all places we think of as difficult situations, we are very attentive which there be a social basis to ensure which people who are at risk, people who are underprivileged, people who are exposed, have sufficient benefits to actually cope with the situation.”
Inflation in Egypt peaked at 35 percent in July 2017, a figure which’s dropped to 17 percent as well as is actually supposed to reach 12 percent which year, according to the IMF. Egypt’s gross domestic product growth is actually also improving, projected to be 4.8 percent by July of which year, up coming from 3.5 percent in 2016.
Still, the modifications have hit many ordinary people hard — Egyptians saw record cost increases in 2017 after the government allowed the national currency to float, which was also part of the IMF program.
Asked if these reforms were actually helping the population quickly enough, Lagarde acknowledged which an improvement in living standards doesn’t happen overnight, nevertheless which which was a necessary process.
“When you see inflation going down, when you see money coming back into the country, investors looking at Egypt as a Great risk in which to set up fresh companies as well as create jobs, which’s the response,” she said.
“Of course which’s not easy when you go through which process of reforms,” she added. “nevertheless when you see the light at the end of the tunnel, where prices are going to go down, where the social basis is actually there as well as where investments are coming to create jobs, I think which’s definitely encouraging.”