Egypt GDP growth beats 2023 target: Minister

Ahram Online , Thursday 4 Jan 2024

Egypt's economy expanded faster than planned in the fiscal year (FY)2022/2023, driven by double-digit gains in sectors ranging from tourism to infrastructure, the Minister of Planning and Economic Development Hala El-Said stated on Wednesday.

Hala El-Said addressing the Planning and Budget Committee of the Parliament.
Hala El-Said addressing the Planning and Budget Committee of the Parliament.

El-Said's remarks came during a speech before the Planning and Budget Committee of the Parliament.

Gross domestic product (GDP) grew to EGP 10.2 trillion in the year ending 30 June, surpassing the targeted EGP 9.2 trillion, she noted.

El-Said ascribed the GDP growth to the advancement in key sectors in FY2022/2023, including hotels and restaurants, the Suez Canal, and communications, which grew by 28 percent, 18.4 percent, and 16.3 percent, respectively.

While inflation averaged around 24.8 percent in 2023, unemployment fell to 17.3 percent for women in 2023, down from 19.2 percent in 2022, she said.

The minister explained that investments constituted 13 percent of GDP in 2023, as opposed to the projected goal of 15.2 percent, with the government accounting for three-quarters of investments and the private sector for a quarter.

El-Said referred to the government's plans to increase private investment to 30 percent of total investments in 2024 and 60 percent by 2027 to sustain expansion.

She predicted that disinflation efforts would tame prices while reiterating economic targets. 

On Wednesday, Prime Minister Mostafa Madbouly stated that his government plans to reduce inflation to below 10 percent in 2025 and predicted that the economy would fully recover by that year.

The annual headline inflation rate declined to 36.4 percent in November 2023, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).

The Egyptian government adjusted its growth forecast for FY2023/24 in early December, lowering the projection to 3.5 percent from the previously anticipated 4.2 percent.

In October, the World Bank revised its growth forecasts for Egypt for 2023 to 4.2 percent, up from 4 percent.

However, the bank downgraded the country's growth forecast in 2024 to 3.7 percent, down from 4 percent.

Similarly, the International Monetary Fund (IMF) adjusted its predictions for Egypt, expecting Egypt's real GDP to increase by 4.2 percent in 2023, up from the previously anticipated growth of 3.7 percent. 

In 2024, however, the IMF revised its projection for Egypt's real GDP growth from 4.1 percent to 3.6 percent.  

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