British Prime Minister Keir Starmer has appointed Egyptian-born economist Dr. Nemat Shafik as his new chief economic adviser, in a strategic move aimed at strengthening the government’s economic policymaking during a period of sluggish growth and mounting political pressure over immigration policy.
The appointment, confirmed Monday, marks a significant addition to Starmer’s top team as the Labour government—elected in July 2024—grapples with rising inflation, tepid growth forecasts, and a looming Autumn Budget that is expected to test both fiscal discipline and public expectations.
Dr. Shafik, a globally respected economist and academic leader, most recently served as president of Columbia University in New York. She previously held key roles at the Bank of England, the International Monetary Fund (IMF), and the UK Department for International Development (DfID).
Her new role places her at the center of the Labour government’s economic strategy, where she will advise both the Prime Minister and Chancellor of the Exchequer Rachel Reeves—herself under pressure to strike a delicate balance between stimulating investment and maintaining market confidence.
Deep Expertise in Global Economics
Born in Alexandria, Egypt, and raised in the United States and the United Kingdom, Shafik is widely known for her technocratic expertise and pragmatic approach to economic policy. She served as Deputy Governor of the Bank of England from 2014 to 2017, where she was responsible for markets and banking operations, and played a key role during the post-financial crisis recovery.
Her international résumé also includes a stint as Deputy Managing Director of the IMF and Permanent Secretary at DfID, giving her a rare blend of academic insight and policy experience.
“Dr. Shafik brings extraordinary experience at the intersection of global economics and public service,” a Downing Street spokesperson said. “Her leadership will be critical as we navigate complex domestic and international challenges.”
A New Economic Era for Labour
Labour’s return to power after 14 years in opposition has reignited debates over economic reform, tax policy, and public investment. While Starmer and Reeves have emphasized fiscal responsibility, critics have called for bolder action to address inequality and revitalize public services.
Dr. Shafik’s appointment may signal a more technocratic, data-driven approach to economic management—potentially giving Starmer’s administration added credibility in the eyes of business leaders and international investors.
Still, major challenges lie ahead. The UK economy remains sluggish, and recent polling shows public concern over inflation and immigration remains high.
Analysts say Shafik’s input could be crucial in shaping Labour’s next economic moves. “Minouche Shafik is one of the most experienced economic minds of her generation,” said a senior economist at the London School of Economics. “Her appointment suggests Starmer wants rigour and international credibility at the core of his economic team.”
A Historic Milestone
Dr. Shafik becomes one of the most senior women of Middle Eastern descent to serve in a top advisory role in the British government—a point noted by commentators in the Arab world, where her appointment has been widely praised.
In Egypt and across the region, Shafik’s elevation is seen as a proud moment for the diaspora. “This is a recognition not only of her personal excellence, but also of the contributions of Arab professionals globally,” one commentator wrote on X (formerly Twitter).
