Egyptian Prime Minister Mostafa Madbouly reassured the public that “the worst has passed” with regard to the country’s record high external debts, while record inflation figures have also started to ease.
Consumer prices fell last month, with the inflation level at 12 per cent, down from 13.9 per cent in July. The rate in August was the lowest since March 2022.
Mr Madbouly also highlighted the government’s efforts to bring down the debt-to-GDP ratio to 80 per cent next year, down from a peak of about 97 per cent during the 2023-2024 financial year. The ratio of external debts to gross domestic product fell to 85 per cent during the 2024-2025 fiscal year, he said.
The drop in Egypt’s inflation last month came as declines in the prices of meat, poultry and fruits partially offset cost increases for several key goods, including vegetables, dairy products, eggs and household appliances.
The country’s strengthening pound helped reduce costs in the import-reliant economy, according to Japanese bank MUFG in a report on Thursday.
“The currency, which lost nearly 40 per cent in March 2024, has since rebounded to around 48 per dollar, its strongest in 14 months, supported by foreign inflows, tourism and exports,” it said.
The downwards trend in the country’s inflation rate since September 2023 – when it peaked at 38 per cent – has also prompted the Central Bank of Egypt to cut interest rates three times this year after maintaining a tight monetary policy to cool off the economy.
The latest cut was two weeks ago when the bank reduced its overnight lending rate by 200 basis points. The prior cut, in May, slashed rates by 100 basis points. This followed an April reduction of 200 basis points.
A tight monetary policy was one of the International Monetary Fund’s conditions when it agreed to lend Egypt $8 billion over four years last year.
The country’s industrialists had been bemoaning the high interest rates because they limited borrowing from banks for operational costs.
This consequently resulted in a decrease in production output as many sectors including construction slowed significantly.
However, Mr Madbouly said that the country recorded an increase in exports by about 20 per cent compared to the previous year, a change which he attributed to improving economic conditions.
He said that lower interest rates enable the repayment of debts because of lower service fees but that the decision to increase or decrease them was not in his government’s purview and was entirely up to the central bank’s monetary policy committee.
While highlighting the drop in Egypt’s annual urban consumer price inflation, some economists noted that this metric reflects price changes in urban areas only, which account for 44.4 per cent of Egyptian households, according to a Capmas report earlier this year. Rural inflation, which affects the remaining 55.6 per cent of households, is not captured in this figure and may show a different trend.
Looking ahead, with inflation pressures easing and the central bank already cutting rates by 525 basis points this year, further monetary easing remains likely, though potential fuel price rises could temper such moves, MUFG said.
However, Mr Madbouly has said that another hike in electricity prices was not in the government’s plan for now.
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
The years Ramadan fell in MayRead more about the coronavirusKilling of Qassem SuleimaniThe five pillars of IslamKilling of Qassem SuleimaniThe Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
UAE currency: the story behind the money in your pocketsKilling of Qassem SuleimaniZayed Sustainability PrizeWhat sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
An arms embargo
A ban on uranium enrichment and reprocessing
A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
A targeted global asset freeze and travel ban on Iranian individuals and entities
Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Killing of Qassem SuleimaniThe five pillars of IslamMohammed bin Zayed MajlisMore coverage from the Future ForumZayed Sustainability PrizeUAE currency: the story behind the money in your pocketsMohammed bin Zayed MajlisKILLING OF QASSEM SULEIMANIKey facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills
More on Quran memorisation:Zayed Sustainability PrizeThe specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Red flags
Promises of high, fixed or ‘guaranteed’ returns.
Unregulated structured products or complex investments often used to bypass traditional safeguards.
Lack of clear information, vague language, no access to audited financials.
Overseas companies targeting investors in other jurisdictions – this can make legal recovery difficult.
Hard-selling tactics – creating urgency, offering ‘exclusive’ deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
COMPANY%20PROFILE%20
%3Cp%3EName%3A%20DarDoc%3Cbr%3EBased%3A%20Abu%20Dhabi%3Cbr%3EFounders%3A%20Samer%20Masri%2C%20Keswin%20Suresh%3Cbr%3ESector%3A%20HealthTech%3Cbr%3ETotal%20funding%3A%20%24800%2C000%3Cbr%3EInvestors%3A%20Flat6Labs%2C%20angel%20investors%20%2B%20Incubated%20by%20Hub71%2C%20Abu%20Dhabi’s%20Department%20of%20Health%3Cbr%3ENumber%20of%20employees%3A%2010%3C%2Fp%3E%0A
8 traditional Jamaican dishes to try at Kingston 21
Trench Town Rock: Jamaican-style curry goat served in a pastry basket with a carrot and potato garnish
Rock Steady Jerk Chicken: chicken marinated for 24 hours and slow-cooked on the grill
Mento Oxtail: flavoured oxtail stewed for five hours with herbs
Ackee and salt fish: the national dish of Jamaica makes for a hearty breakfast
Jamaican porridge: another breakfast favourite, can be made with peanut, cornmeal, banana and plantain
Jamaican beef patty: a pastry with ground beef filling
Hellshire Pon di Beach: Fresh fish with pickles
Out of Many: traditional sweet potato pudding
Killing of Qassem SuleimaniEA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
More on animal traffickingWhat are the influencer academy modules?
Mastery of audio-visual content creation.
Cinematography, shots and movement.
All aspects of post-production.
Emerging technologies and VFX with AI and CGI.
Understanding of marketing objectives and audience engagement.
Tourism industry knowledge.
Professional ethics.
Results
5.30pm: Maiden Dh165,000 (Turf) 1,600m; Winner: Al Battar, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer).
6.05pm: Maiden Dh165,000 (Dirt) 1,200m; Winner: Good Fighter, Richard Mullen, Satish Seemar.
6.40pm: Handicap Dh185,000 (T) 1,200m; Winner: Way Of Wisdom, Tadhg O’Shea, Satish Seemar.
7.15pm: Handicap Dh170,000 (D) 2,200m; Winner: Immortalised, Tadhg O’Shea, Satish Seemar.
7.50pm: Handicap Dh185,000 (T) 2,000m; Winner: Franz Kafka, James Doyle, Simon Crisford.
8.25pm: Handicap Dh185,000 (D) 1,200m; Winner: Mayadeen, Connor Beasley, Doug Watson.
9pm: Handicap Dh185,000 (T) 1,600m; Winner: Chiefdom, Mickael Barzalona, Salem bin Ghadayer
Green ambitions
Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
Lake: Brown’s centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
UAE currency: the story behind the money in your pocketsMohammed bin Zayed Majlis