May 18, 2022

Unprecedented rise in Egypt’s exports supported by economic reform and flexible production system: experts – Famagusta Gazette

he unprecedented rise in Egyptian exports in 2021 is due to the economic reform undertaken by the government in recent years as well as the country’s flexible production system which has enabled it to cover the needs related to the COVID-19 pandemic , said Egyptian economic experts.

Egypt’s exports in 2021 hit a record high of around $31 billion, marking the highest export rate in its history and a 27% increase from its exports in 2020, according to a recent report. statement by the Egyptian Presidency.

Among the most important sectors that have boosted Egyptian exports are chemicals, building materials, food industries, engineering and electronics, crops and ready-to-wear garments.

Gamal Bayoumi, Secretary General of the Cairo-based Arab Investors Union (AIU), attributed the unprecedented increase in Egyptian exports over the past 12 months to the customs exemption enjoyed by Egyptian products in Arab markets and Africans.

“The impacts of COVID-19 on neighboring economies and Egypt’s success in covering the resulting raw material deficit, in addition to the expansion of Egyptian agricultural and industrial projects, have led to increased Egyptian exports of raw materials,” Bayoumi told Xinhua.

He added that the economic reform implemented by Egypt is one of the main reasons for the increase in Egyptian exports.

Supported by the International Monetary Fund, Egypt launched a three-year economic reform program in November 2016 that included liberalizing the exchange rate of its local currency and implementing austerity measures such as phasing out subsidies on fuel and electricity.

In April 2021, the Egyptian government launched the second phase of the reform program, aiming for a growth rate of at least 6-7% over the next three years and a reduction of the deficit to 5.5%.

The IAU chief highlighted a significant expansion of Egyptian agricultural exports, noting that Egypt is a big exporter of oranges, olives and dates, as well as vegetables and fruits, especially to Europe .

“The European market, where Egyptian exports benefit from full exemption from customs duties, is the most important for Egyptian exports, followed by the Arab and African markets in which Egypt has a positive trade balance,” he said. -he declares.

Egyptian Prime Minister Mostafa Madbouly stressed during a ministerial meeting that the government has adopted an export stimulus program, which has contributed significantly to the growth of Egyptian exports.

He noted that Egypt produces high quality goods that compete with their counterparts globally.

Egypt’s recent export growth is also attributed to the flexibility of its production system, said economic expert Mongy Aly Badr, a former adviser to Egypt’s trade and industry minister.

“Rising consumption rates in European, Arab and African countries, amid their production freeze due to the COVID-19 outbreak, gave a relative advantage to Egyptian industries and contributed to the increase in Egyptian exports to these markets,” Badr told Xinhua. .

Badr explained that the surge in Egyptian exports will have “a very positive impact” on the country’s trade balance and lead to deficit reduction and GDP growth, as well as an improvement in the solvency of the national economy, which provides access to external loans at low interest rates and improves the credit level of the Egyptian economy.