EgyptDailyNews - Finance Minister Mohamed Maait said on Tuesday that the government's main priority is to reduce inflation to the level targeted by the Central Bank, expecting growth in the fiscal year that begins in July to rise to 4.2 percent from 2.8 percent this year.
Inflation fell to 33.3 percent in March from a record high of 38 percent in September, well above the central bank's long-term target of between five and nine percent.
The minister said during a meeting in Washington that the government also hopes to reduce interest rates, reduce the state's role in the economy and allow the private sector to compensate for the shortfall.
He explained that the government set a limit of one trillion Egyptian pounds ($20.6 billion) for all public investments, including investment made by the army. He added that the private sector should constitute at least 65 to 70 percent of the economy.
The Egyptian economy has been affected by the ongoing six-months war in Gaza, which has slowed tourism and reduced revenues from the Suez Canal by 60%, two of the country's largest sources of foreign currency.
