2.4 million job opportunities have been made available through economic reform beginning in mid 2004 and has led to reduced unemployment fro 10.5% to 9%.

A reduced deficit in the budget to 7.4% as op...

2.4 million job opportunities have been made available through economic reform beginning in mid 2004 and has led to reduced unemployment fro 10.5% to 9%. A reduced deficit in the budget to 7.4% as opposed to 9% in the former years.  2.7 billion dollars surplus in the trade balance and 5.3 billion dollars surplus in the overall balance in view of soaring Egyptian exports in products and services.  An appraisal of the current reforms in the fiscal sector and their positive impact on the banking sector.  An appraisal of the international criteria in applying in circulating data with calls to encourage more transparency. The International Monetary Fund has affirmed in its report that a substantial growth has been achieved by Egypt. The IMF delegation has met with the economic group under the chairmanship of Minister of Finance Dr. Youssef Boutros Ghali and it has also been received by the Central Bank of Egypt, the Central Statistics Authority as well as a number of institutions to prepare reports on the economic performance. The IMF report has also noted an increase in the rate of inflation that has accompanied growth while noting that government policy has helped contain the growth in inflation. The report has praised the increase in Egyptian exports in services and products and which has led to a surplus in the current balance reaching 2.7 billion dollars in the fiscal year 2006/2007 The IMF report has also noted the decrease in the state budget to 7.4%. The report also noted the specified target in the budget during 2007/2008 which aims at reducing the deficit to 7% and that would mean a decline in the debt amount leading to a simultaneous ability of the economy to service the debt. The report has clarified the reasons for improvement in the deficit as due to infrastructural reform in the tax authority, the application of a unified treasury, eradicating fiscal red tape that bound the treasury to the National Investment Bank, the insurance and pension funds and which have led to surpluses to the treasury. The report reiterates that in the event of excluding exception flows in the last two years, the deficit will improve by 2% of the domestic product. The report noted that in order for the economy to reach high growth rate (while keeping the inflationary rates between 6%-8%) it will be important to increase national saving rates and which will demand the resumption of the reform agenda.  The report called on the Central Bank to continue to monitor the rate of inflation while noting that inflation is expected to continue to register at the high rate of 6-8% The report commended the monetary policy and the foreign currency departmental policy which has shown a degree of flexibility. The report has commended the current reforms in the financial sector in relation to debt payments to banks and the impact on the banking sector.  The report has also welcomed the government program in relation to resumption of reforms with an aim of improving the performance of the banking sector. The report has called for a resumption in reforms in the judiciary and the setting up of economic courts. The report has also commended the tremendous improvement in the application  of international criteria in publishing  important data. (source : Ministry of Finance)