Egypt on right track for higher economic growth: IMF chief

Egypt is moving in the right direction in terms of economic reforms for a higher growth rate, the chief of the International Monetary Fund (IMF) Christine Lagarde said here on Friday.

Lagarde made these remarks during the opening session of the three-day Egypt Economic Development Conference (EEDC) held in the Red Sea resort city of Sharm El-Sheikh.

"The good news is that a journey to higher growth is already underway," Lagarde told the conference attended by Egyptian President Abdel-Fattah al-Sisi and a number of Arab and African heads of states, stressing that the recent energy subsidy cuts was among the successful reforms done by the Egyptian government.

"We never expected it to be done in a year," she said, adding that to launch the reform process in Egypt was a major achievement but to pursue it is a major objective.

Lagarde added that Egypt's business environment could make it among the top 50 countries worldwide "with the right reform."

The EEDC, held from March 13 to 15, is meant to provide major investment opportunities to local and foreign investors as part of the country's struggle to revive its ailing economy following four years of political turmoil.

Egypt is currently working on a big national project that includes the Suez Canal expansion and the development of its surrounding region, providing various prospect investments that are worth billions of dollars.

The IMF chief said the Suez canal development project reflects confidence of the people and the current leadership, as the project was mainly financed by the Egyptian people through their purchase of investment certificates.

Around 90 countries and 25 organizations and international institutions take part in the EEDC which is an initiative of late Saudi King Abdullah bin Abdulaziz in support of the Egyptian new leadership following the overthrow of former Muslim Brotherhood-oriented President Mohamed Morsi. Endit