This growth comes amid ongoing regional conflicts and global economic uncertainty, said Al-Mashat.

The minister added that geopolitical tensions have led to a 30 percent decline in overall economic activity for the FY2023/2024, with the last quarter witnessing a dramatic 68 percent drop.

Performance by sector
 

The non-petroleum manufacturing sector, which makes up 11.4 percent of the country's GDP, contracted by 5.2 percent due to raw materials shortage.

The extractive sector also faced challenges, with a 4.7 percent decline in production.

Oil and gas production declined by 1.8 percent and 13.1 percent, respectively, due to decreased foreign investments and slower development of existing oil wells.

Governmental actions
 

To tackle these challenges, the Egyptian government took several economic measures to improve managing public investments and boost the private sector’s role.

The government's strategy builds on three key areas: achieving economic stability, enhancing competitiveness and business conditions, and promoting sustainable practices.

Promising areas
 

Despite the downturn in several sectors, some areas are showing positive growth that helps balance the economy:

- Information and communication technology (ICT): +14.4 percent
- Tourism: +9.9 percent
- Wholesale and retail trade: +6.1 percent
- Construction: +5.7 percent
- Social services: +5.6 percent
- Transportation and storage: +5.4 percent
- Agriculture: +3.8 percent 

These promising sectors align with the government’s goal of boosting the economy and promoting key areas, such as manufacturing, agriculture, and technology.

Looking ahead
 

The minister’s announcement also indicated that these positive trends align with forecasts from international organizations, which predict a GDP growth rate of 4 percent for FY2024/2025.

This optimistic outlook is due to the government’s commitment to supporting private sector growth and improving economic policies.

In related news, Minister Al-Mashat announced that the government has proposed a law to transfer the Sovereign Fund of Egypt from the planning ministry to the prime minister’s office, with a designated minister responsible for its management.

Funding initiatives
 

Al-Mashat added that Egypt has received facilitated financing of $40 billion over the past four years to support development projects across different regions.

Additionally, Egypt is set to receive $2.9 billion in development funding from the European Union in December.

Furthermore, Egypt launched the national strategy for financing in September during the United Nations (UN) Summit of the Future.