Egypt has initiated economic reforms to address challenges and reduce risks from global and regional crises to achieve stability and growth, according to the Cabinet's statement on Monday. The North African country strongly supports the private sector as the key to sustainable growth and is committed to implementing investment initiatives to boost business activity and attract investment, particularly from the San Francisco Bay area, the statement quoted Finance Minister Mohamed Maait as saying. The Egyptian economy is facing challenges due to a slowdown in economic activity, reduced trade, and geopolitical tensions, impacting tax and non-tax revenues, Maait said. He added that tensions in the Red Sea region are causing a decline in ship traffic through the Suez Canal, potentially resulting in a 60 per cent revenue drop. The minister, addressing the Cabinet's Information and Decision Support Centre (IDSC) conference held in Cairo University, further said the economy was facing higher financing costs due to interest rate hikes and currency fluctuations, with Egypt's treasury bearing the cost difference amounting to 120 billion Egyptian pounds. Maait concluded that petroleum subsidies have risen sharply, nearing 200 billion pounds due to higher global prices, shipping costs, and exchange rate fluctuations against the dollar.
