Egypt's growth rate down due to Russia-Ukraine crisis, planning minister tells Senate

Gamal Essam El-Din , Monday 30 May 2022

The Russia-Ukraine crisis has led to Egypt’s projected growth rate being downgraded to 6 percent at the end of the current fiscal year and to an expected 5.7 percent in FY2022/23, Minister of Planning and Economic Development Hala El-Said said in a statement before the Senate – Egypt's consultative upper house.

 Hala El-Said
Egypt s Planning Minister Hala El-Said delivers a statement before the Senate. Press photo


Before the outbreak of the Ukraine crisis, Egypt had been aiming to achieve a growth rate of 6.4 percent in FY2021/22 and 9 percent during the first half of the current fiscal year, the minister said.

"We expect [the growth rate] to begin climbing again to reach 6.2 percent and 6.5 percent in the following two years," she said, adding that “these rates are high compared to neighbouring countries, who achieved a growth rate between only 3 percent and 4 percent last year.”

"At the same time, we expect that investments will exceed EGP 1 trillion for a second year, reaching EGP 1.45 trillion in the new fiscal year, a growth rate of 17 percent, with EGP 1.1 trillion going to public investments, and EGP 350 billion to private investments."

El-Said revealed that the value of Egypt's GDP is expected to reach EGP 9.26 trillion, with a growth rate of 16.3 percent from last year, when the value of the GDP was estimated at EGP 7.96 trillion.

El-Said's statement came on the back of a debate in the Senate over Egypt's socio-economic development plan in FY 2022/23. The Senate is authorised by the constitution to open a debate on the country’s socio-economic development and prepare a report on it.

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