Mohamed Maait: I Hope the Suffering from the Negative Effects of IMF Conditions Does Not Last Long
Mohamed Maait discusses the effects of IMF conditions on the Egyptian economy and the middle class.
SUMMARY
Mohamed Maait, Executive Director at the IMF, explains that IMF programs have negative effects on vulnerable groups and the middle class, emphasizes the importance of social protection programs alongside economic reforms, and expresses optimism about the improvement of the Egyptian economy next year.
KEY HIGHLIGHTS
- Conditions linked to IMF programs cause negative effects and suffering.
- IMF thinking has evolved to include social protection programs with reforms.
- The middle class is negatively affected during the reform period, which may last two years.
- Optimism about the improvement of the Egyptian economy and living standards next year.
- The goal is to reduce inflation to 7% plus or minus 2% to achieve price stability.
CORE SUBJECT
Impact of IMF Conditions on the Egyptian Economy
Dr. Mohamed Maait, the Executive Director at the International Monetary Fund and representative of the Arab group, stated that the conditions associated with IMF programs cause "negative effects and suffering." He added during a television interview on Al Mehwar channel that the IMF's thinking has evolved over recent years. Whereas it used to focus solely on the economic aspect "like a surgeon holding a scalpel," it now says that "reform programs must be accompanied by social protection programs" because it recognizes that these have "negative effects" on the most vulnerable groups. He revealed his dialogue with them regarding the group not covered by protection programs, saying: "I discussed with the IMF and asked them, what about the middle class?!" He pointed out that reform leads to economic stability, growth, job creation, and improved living standards, continuing: "Reform takes time, possibly no less than two years, during which the middle class continues to be negatively affected and suffers." He expressed optimism about the future of the Egyptian economy, saying: "With economic stability, I hope the period of suffering does not last long, and I am optimistic, God willing, that next year will witness a transition from improved indicators to something tangible reflected in people's lives and an improvement in their living standards." He added that the goal is to reduce the inflation rate to the Central Bank's target of "7% plus or minus 2%" so that citizens feel price stability and any increase in their income or pensions becomes "noticeable."
KEYWORDS
MENTIONED ENTITIES 4
Mohamed Maait
👤 Person_MaleExecutive Director at the International Monetary Fund and representative of the Arab group
International Monetary Fund
🏛️ OrganizationInternational financial institution providing economic reform programs to countries
Central Bank
🏛️ OrganizationInstitution responsible for monetary policy in Egypt
Al Mehwar
🏛️ OrganizationTV channel that broadcast Mohamed Maait's statements
NOTABLE QUOTES 4
"Reform programs must be accompanied by social protection programs because it recognizes that they have negative effects on the most vulnerable groups."
Context: Television statements on Al Mehwar channel
"Reform takes time, possibly no less than two years, during which the middle class continues to be negatively affected and suffers."
Context: Television statements on Al Mehwar channel
"With economic stability, I hope the period of suffering does not last long, and I am optimistic, God willing, that next year will witness a transition from improved indicators to something tangible reflected in people's lives and an improvement in their living standards."
Context: Television statements on Al Mehwar channel
"The goal is to reduce the inflation rate to the Central Bank's target of 7% plus or minus 2% so that citizens feel price stability."
Context: Television statements on Al Mehwar channel