Al-Mashat reviews the national narrative for economic development and efforts to drive sustainable growth through the new framework of the Ministry of Planning, Economic Development, and International Cooperation.

Al-Mashat: The government is working on a set of coordinated policies to manage public finances and investment governance to enable the private sector and reduce inflation.

The successive global crises since 2020 have contributed to rising global inflation rates and affected the development process in developing and emerging countries.

Developing countries must focus on diversifying their economic structures and expanding into productive sectors and green transformation to create new job opportunities and enhance sustainable growth.

Investing in the education, health, and skills of women boosts productivity and positively impacts growth rates.

During her participation at the World Economic Forum in Davos, Switzerland, under the theme "Collaboration for the Intelligent Age," H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participated in a series of high-level discussions on future growth, inflation, gender equality, and the future of development in Africa.

Future of Growth Champions Meeting

H.E. Dr. Rania Al-Mashat participated in a meeting of growth leaders alongside Faisal Alibrahim, Minister of Economy and Planning of Kingdom of Saudi Arabia, Lawrence Summers, Director of the Mossavar Rahmani Center for Business and Government at Harvard Kennedy School, Raghuram G. Rajan, Professor of Finance at the University of Chicago’s Booth School of Business, André Hoffmann, Chairman of the Board of Massellaz, and Samaila Zubairu, President and CEO of the African Finance Corporation, among others.

H.E. Dr. Al-Mashat discussed global growth projections, which are expected to reach 3.3% this year and next, according to the International Monetary Fund's World Economic Outlook, noting that this rate is lower than the historical average of 3.7%. She highlighted expectations of growth improvements in sub-Saharan Africa and the slowdown facing Europe and emerging markets.

H.E. Minister Al-Mashat outlined Egypt's national economic development narrative, explaining that the Ministry integrates planning and international cooperation mechanisms to maximize the use of domestic and foreign resources to achieve inclusive and sustainable growth.

H.E. Dr. Al-Mashat added that the merger of the Ministry of Planning, Economic Development, and International Cooperation aims to enhance the role of the ministry in preparing, implementing, and monitoring the economic and social development plan and boosting economic diplomacy efforts to drive financing for development. This supports the goal of achieving high-quality, sustainable, and inclusive economic growth through increased foreign direct investment and industrial localization.

Viable Growth in a Volatile Era

Additionally, H.E. Minister Al-Mashat participated in a session titled "Viable Growth in a Volatile Era," with Kristalina Georgieva, Managing Director of the International Monetary Fund, Mirek Dušek, Managing Director of the World Economic Forum, Gita Gopinath, First Deputy Managing Director of the IMF, Rebeca Grynspan, Secretary-General of UNCTAD, among others.

H.E. Minister Al-Mashat affirmed that global challenges since 2020, including regional and international tensions, have hindered growth rates, particularly, in developing and emerging countries. 

H.E. Dr. Al-Mashat explained that as central banks adopt monetary easing in early 2025, global inflation is expected to decline, with more natural steps in monetary policy aimed at stimulating economic activity without affecting price stability.

H.E. Minister Al-Mashat emphasized that economic diversification is a key factor in supporting sustainable economies by shifting towards productive sectors and green transformation, which helps create new industries and millions of job opportunities. However, this transformation requires restructuring skills and providing education and vocational training aligned with market needs.

H.E. Dr. Al-Mashat explained that while macroeconomic stability is essential, it is not enough to ensure sustainable growth and a resilient economy. It must be accompanied by structural reforms to address short-term imbalances and support long-term stability.

Inflation: Past, Present, and Future

H.E. Dr. Rania Al-Mashat participated in a discussion session titled "Inflation: Past, Present, and Future," alongside Julio Velarde, Governor of the Central Bank of Peru, Martin Schlegel, Chairman of the Swiss National Bank, and Martin Wolf from the Financial Times.

During her speech, H.E. Minister Rania Al-Mashat pointed out that inflation rates in Egypt have been rising since 2020 due to the COVID-19 pandemic and its economic impact on price levels. These trends were further exacerbated by the Russia-Ukraine war, which contributed to rising inflation across various emerging and developing markets.

H.E. Dr. Rania Al-Mashat highlighted that Egypt is currently implementing a set of complementary and integrated policies to manage public finances, target inflation rates through monetary policies, and govern public investment spending, while setting a cap on public investments to reduce inflation rates.

The Minister of Planning and Economic Development and International Cooperation also discussed the protective policies expected to be adopted by the United States, which could pose risks to inflation and price levels in many countries.

H.E. Dr. Rania Al-Mashat also pointed out the success of efforts to stop the war in Gaza, which is expected to lead to the return of shipping traffic through the Suez Canal, potentially promoting foreign exchange inflows into the local market.

H.E. Dr. Rania Al-Mashat highlighted that Egypt has taken a series of steps since March 2023 to address the consequences of rising inflation rates. These policies have helped build trust between local and foreign investors and have provided a foundation for macroeconomic stability.

Gender Equality Opportunities

The Minister of Planning and Economic Development and International Cooperation participated in a session titled "Bridging the Gender Gap for Resilient Economies."

During the session, H.E. Dr. Rania Al-Mashat emphasized that achieving gender equality between women and men is essential for inclusive growth, a resilient economy, and a fair transition.

H.E. Minister Rania Al-Mashat further noted that over the next decade, closing the gender gap is expected to double global GDP growth rates, with global GDP potentially increasing by more than 20%, according to a World Bank report (2024), by eliminating gaps in employment and entrepreneurship.

H.E. Dr. Rania Al-Mashat added that improving women's productivity has a positive economic impact through investment in their education, skills, and health, facilitating access to decent jobs, and ensuring their voices are heard.

H.E. Dr. Rania Al-Mashat also highlighted that gender equality acts as a catalyst for economic and financial stability, enhancing the ability to recover from shocks.