During his speech, EGX Chairman reviewed the latest developments the global economy witnesses, especially the trade war that is accompanied by the change in the fiscal and monetary policies. He shed the light on some countries that practice protection policies and its impact on the African economies.
EGX Chairman said that the current turbulence of the global economy mandates from countries of the continent to review and develop their economic structures to achieve the desired development for each country according to its characteristics.
“Is it more efficient to rely on the economic model based on industrial capacity-building then promote trade and partnership or based on services, taking into consideration technological developments required for both systems?”
He added that after 10 years of the global financial crisis in 2008, the negative consequences of measures taken by the world’s countries to remedy the crisis emerged; especially, reduction of interest rates to stimulate investment and consequently stimulate job opportunities. This resulted in governments’ debt inflation and pressure on fiscal space in the budgets needed to finance infrastructure projects and improve services.
According to EGX Chairman, the inequality in the income distribution is one of the crises that the world economy still suffers from and must be addressed with sound procedures and follow-up, so that people feel the fruits of economic growth.
EGX Chairman concluded that several steps must be taken into consideration to ensure the achievement of comprehensive and sustainable growth rates, including the need for governments to adopt comprehensive fiscal policies as well as accelerate the investment in education and health to build human calibers capable of formulating policies that make the differences for their country. Additionally, to strengthen social protection networks to protect lower-income groups from the consequences of reform.
Mr. Farid stressed on the governments need to invest in building effective communication as well as communication strategies to inform society of the reforms, their cost and impact.