Cairo - KUNA
The Egyptian government announced Tuesday that the economic situation is stable and reassuring despite the violence and turbulence that the country undergoes since the ouster or former president Mohammad Morsi six months ago.
"Egypt's economy is reassuring and more stable than it was six months ago, despite the difficult security situation," Deputy Prime Minister and Minister of International Cooperation Dr. Ziad Bahaa Ad-Deen said in a press conference following a cabinet meeting.
"Six months ago, economy was on the brink of total collapse as resources of foreign currency reserves were running out and the government's failure to secure finance for food and fuel supplies, amid expectation of that budget deficit will reach unprecedented levels in the light of Egypt's economic isolation in the wake of 30th June revolution." He pointed out that the government succeeded in addressing this serious situation and managed to secure finance for food and fuel supplies and resolve foreign reserve problem.
"Moreover, the government is seeking to take urgent measures to reduce economic burden on citizens and work to stimulate the economy to provide new jobs and increase production," he said.
He added that the government also eyes drastic long-term reform to restructure the Egyptian economy.
He stated that the government has reached agreements with Arab and European countries to finance development projects in the country at a total cost of USD 1.5 billion.
For his part, Minister of Finance Dr. Ahmad Jalal said the transition period in Egypt has extended since January 2011.
"The Egyptian economy is ready to go ahead after the complete of political institutions," he said, referring the election of a new president and parliament.
He unveiled that the government has opted to stimulating rather than austerity approach in tackling the economic problems.
"The government has adopted a policy of stimulating the economy through increasing its investments in infrastructure and rationalization of expenditure and abolishing its major distortions (like energy subsidies) and re-distribution of expenditures to achieve the goal of social justice." He added that the government also seeks to improve the management of public debt and increase tax revenues.