Private sector investments in Egypt grew by 73% during the last fiscal year, Egyptian Finance Minister Ahmed Kouchouk said, adding that the private sector is now leading investment in the country. Speaking at a virtual meeting with investors organised by asset management firm FIM Partners, Kouchouk said the Egyptian economy's growth rate reached 4.4% in the last fiscal year, which ended in June, exceeding expectations on the back of strong performance in the manufacturing, tourism, and information technology sectors. "The Egyptian economy has begun to regain the confidence of investors and has become an attractive investment destination with diverse competitive opportunities," Kouchouk said in a ministry statement. He noted that economic and financial reforms have resulted in a primary surplus of 3.6% of GDP, which is higher than targeted despite challenges. The debt of budget-sector entities as a percentage of GDP was reduced by 10% over two years, and the external debt of the budget sector was reduced by about $4bn, he added. Tax revenues increased by 35% during the last fiscal year without new taxes, driven by economic activity and the expansion of the tax base. Foreign direct investment jumped to about $12.2bn during the same period and was highly diversified across sectors, the minister said. Remittances from Egyptians abroad rose 66% to $36bn, net foreign assets have improved to good levels, and inflation rates are declining sharply, allowing for a recent interest rate cut, he explained. "We are working on converting a large part of the deposits of Arab countries and the debt of some other countries into investments to significantly reduce debt," Kouchouk said. He added that preliminary indicators for the first quarter of the current fiscal year reflect continued significant improvement and the reaping of the benefits of financial and economic reforms, with the primary surplus exceeding 170 billion Egyptian pounds and government debt continuing to decline. The perception of markets and international rating agencies has begun to change positively, providing a more comprehensive picture of the Egyptian economy, Kouchouk concluded.
