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.
'Spies in Disguise'
Director: Nick Bruno and Troy Quane
Stars: Will Smith, Tom Holland, Karen Gillan and Roshida Jones
Rating: 4 out of 5 stars
'Texas Chainsaw Massacre'
Rating: 1 out of 4
Running time: 81 minutes
Director: David Blue Garcia
Starring: Sarah Yarkin, Elsie Fisher, Mark Burnham
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
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SPECS
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UAE currency: the story behind the money in your pockets
Company profile
Name: Tratok Portal
Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
The specs: 2018 BMW X2 and X3
Price, as tested: Dh255,150 (X2); Dh383,250 (X3)
Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)
Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)
Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)
Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)
Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)
UAE currency: the story behind the money in your pockets
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Ballon d’Or shortlists
Men
Sadio Mane (Senegal/Liverpool), Sergio Aguero (Aregentina/Manchester City), Frenkie de Jong (Netherlans/Barcelona), Hugo Lloris (France/Tottenham), Dusan Tadic (Serbia/Ajax), Kylian Mbappe (France/PSG), Trent Alexander-Arnold (England/Liverpool), Donny van de Beek (Netherlands/Ajax), Pierre-Emerick Aubameyang (Gabon/Arsenal), Marc-Andre ter Stegen (Germany/Barcelona), Cristiano Ronaldo (Portugal/Juventus), Alisson (Brazil/Liverpool), Matthijs de Ligt (Netherlands/Juventus), Karim Benzema (France/Real Madrid), Georginio Wijnaldum (Netherlands/Liverpool), Virgil van Dijk (Netherlands/Liverpool), Bernardo Silva (Portugal/Manchester City), Son Heung-min (South Korea/Tottenham), Robert Lewandowski (Poland/Bayern Munich), Roberto Firmino (Brazil/Liverpool), Lionel Messi (Argentina/Barcelona), Riyad Mahrez (Algeria/Manchester City), Kevin De Bruyne (Belgium/Manchester City), Kalidou Koulibaly (Senegal/Napoli), Antoine Griezmann (France/Barcelona), Mohamed Salah (Egypt/Liverpool), Eden Hazard (BEL/Real Madrid), Marquinhos (Brazil/Paris-SG), Raheem Sterling (Eengland/Manchester City), Joao Félix(Portugal/Atletico Madrid)
Women
Sam Kerr (Austria/Chelsea), Ellen White (England/Manchester City), Nilla Fischer (Sweden/Linkopings), Amandine Henry (France/Lyon), Lucy Bronze(England/Lyon), Alex Morgan (USA/Orlando Pride), Vivianne Miedema (Netherlands/Arsenal), Dzsenifer Marozsan (Germany/Lyon), Pernille Harder (Denmark/Wolfsburg), Sarah Bouhaddi (France/Lyon), Megan Rapinoe (USA/Reign FC), Lieke Martens (Netherlands/Barcelona), Sari van Veenendal (Netherlands/Atletico Madrid), Wendie Renard (France/Lyon), Rose Lavelle(USA/Washington Spirit), Marta (Brazil/Orlando Pride), Ada Hegerberg (Norway/Lyon), Kosovare Asllani (Sweden/CD Tacon), Sofia Jakobsson (Sweden/CD Tacon), Tobin Heath (USA/Portland Thorns)
GROUP RESULTS
Group A
Results
Ireland beat UAE by 226 runs
West Indies beat Netherlands by 54 runs
Group B
Results
Zimbabwe tied with Scotland
Nepal beat Hong Kong by five wickets
SERIE A FIXTURES
Saturday
AC Milan v Sampdoria (2.30pm kick-off UAE)
Atalanta v Udinese (5pm)
Benevento v Parma (5pm)
Cagliari v Hellas Verona (5pm)
Genoa v Fiorentina (5pm)
Lazio v Spezia (5pm)
Napoli v Crotone (5pm)
Sassuolo v Roma (5pm)
Torino v Juventus (8pm)
Bologna v Inter Milan (10.45pm)
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
