{"id":638164,"date":"2024-08-09T00:00:00","date_gmt":"2024-08-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/08\/09\/kouchouk-lays-out-his-economic-plan-in-first-presser-as-finance-minister\/"},"modified":"2024-08-09T00:00:00","modified_gmt":"2024-08-09T00:00:00","slug":"kouchouk-lays-out-his-economic-plan-in-first-presser-as-finance-minister","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/08\/09\/kouchouk-lays-out-his-economic-plan-in-first-presser-as-finance-minister\/","title":{"rendered":"Kouchouk lays out his economic plan in first presser as finance minister"},"content":{"rendered":"

Good morning, folks, and a happy Friday to you all. <\/strong>After a pretty hectic start to the week that saw massive stock market drops spark panic concern on trading floors across the globe, it seems like we all release a collective sigh of relief as the markets look to be on the mend \u2014 for now at least.<\/p>\n

LAST WEEK IN 3 MINS-<\/p>\n

ECONOMY-<\/strong><\/p>\n

#1- Our first look at Kouchouk\u2019s policies:<\/strong> Finance Minister Ahmed Kouchouk held his first presser<\/a> since becoming FinMin on Tuesday to give us a glimpse of the results of the fiscal year 2023-2024 and let us in on his strategy moving forward. <\/p>\n

The main message: <\/strong>Kouchouk stressed that improved budget figures are \u201cmeaningless\u201d unless they translate into better economic performance, increased business competitiveness, and improved living standards.<\/p>\n

Among the most important metrics:<\/strong> The government rationalized public spending by 2.2% of GDP, brought down the budget deficit to 3.6%, and achieved a primary surplus of 6.1% during the last fiscal year. Looking forward, the government wants to reduce debt servicing to 35% of total government spending over the medium term.<\/p>\n

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#2- Inflation falls for the fifth consecutive month: <\/strong>Annual headline inflation in Egyptian cities eased by 1.8 percentage points to 25.7% in July, down from 27.5% in June<\/a>, according to figures from state statistics agency Capmas. July\u2019s inflation figure, which came on the back of a favorable base effect, is the lowest recorded since December 2022. Monthly inflation also cooled to 0.4% in urban areas in July compared to 1.6% in the month before.<\/p>\n

#3- Non-oil private sector activity was at its <\/strong>second highest level since August 2021<\/a><\/strong>,<\/strong> despite dipping in July,<\/strong> S&P Global\u2019s Egypt Purchasing Managers\u2019 Index (PMI) report showed. Egypt\u2019s non-oil activity held near the growth threshold at the start of 3Q 2024, with companies seeing only marginal declines in output and new orders, resulting in businesses reducing their purchases. The index dipped slightly to 49.7 in July \u2014 marking the 44th straight month that the country\u2019s non-oil private sector has been in contraction.<\/p>\n

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#4- The country\u2019s net foreign asset surplus <\/strong>shrank 10% to USD 12.9 bn in June<\/a><\/strong>, down<\/strong> from USD 14.3 bn in May, <\/strong>according to Enterprise calculations based on Central Bank of Egypt figures. The decline comes a month after our net foreign assets shifted from deficit to surplus \u2014 the first time our net foreign asset position had been in the green since February 2022.<\/p>\n

INVESTMENT-<\/strong><\/p>\n

Egypt and the UAE have inked <\/strong>an MoU<\/strong> to build a USD 3 bn petroleum<\/strong> logistics <\/strong>zone at Al Hamra Port on the Mediterranean coast<\/strong>, according to a statement<\/a> by the Cabinet. The construction of the zone is expected to take three years after kicking off in 1H 2025, following the completion of technical studies, a senior Egyptian official told Asharq Business<\/a>.<\/p>\n

The UAE and Egypt are also in talks to build an Emirati industrial zone in East Port Said<\/strong>, which would include solar and wind energy, sewage treatment, seawater desalination, and aluminum manufacturing projects, according to a statement by the Industry and Transport Ministry. The zone could also be a freezone or special economic zone exempt of customs duties, the statement said.<\/p>\n

<\/a> <\/p>\n

Do you want to attend our 2024 Enterprise Finance Forum on 24 September? <\/strong>Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.<\/p>\n

Why attend? <\/strong>We\u2019re in the early days of a generational realignment of power in our industry \u2014 in our region and beyond \u2014 and on the cusp of the biggest intergenerational transfer of wealth that the world has ever seen. With that as the backdrop, we\u2019re going to take stock of where we stand six months after the float of the EGP and ask what\u2019s next for finance in our country and the wider region. Among the questions we\u2019ll be asking:<\/p>\n