Egypt needs $20bn investments a year: finance minister

December 05, 2013 - 2:26:09 pm

CAIRO: Egyptian Minister of Finance Dr. Ahmed Galal said Thursday that his country's partnership with the GCC is based on mutual benefit. 

The Minister was giving a speech at the Egypt/GCC Investment Forum which kicked off here earlier Wednesday. 

He said that Egypt's economy was slowly recovering, pointing out that Standard & Poors' upped Egypt's credit rating for the first time in three years. 

He added that the government's plan was to achieve high growth rates in order to increase its spending on social services. 

He noted that gross savings reached 15 percent of the GDP, but noted that the level must increase by at least 10 percent.

The Egyptian economy will need investments of $20 billion yearly in order to achieve a growth level of 4 percent. 

The Minister noted that the budget deficit has increased to 240 billion Egyptian pounds. 

Unemployment have also risen to 13 percent and poverty levels to 26 percent, the Minister added.  

He stressed that the $4.8 billion loan from the International Monetary Fund (IMF) would not have led to the required growth rates, due to the austerity measures the fund required. (QNA)

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