Egypt’s economy has been growing at the fastest quarter of annual since 2022 | economy

The Ministry of Planning in Egypt announced today, Wednesday, the increase in GDP growth to 4.3% in the second quarter of the fiscal year 2024-2025 compared to 2.3% in the same quarter of the previous year. (The fiscal year in Egypt begins on July 1 and ends at the end of June)

The ministry attributed this growth to “the government adopting clear policies in order to consolidate the stability of the macroeconomic economy, as well as strengthening the governance of investment spending.”

Private investments

The Ministry stated that private investments exceeded public investments in the second quarter and their contribution exceeded 50% of the total investments, while the percentage of public investment decreased to less than 40%, which reflects the continued shift in the investment structure in Egypt.

Reducing the role of the state in the economy is an essential component of the Egyptian International Monetary Fund lending program, which is 8 billion dollars.

The agreement is part of a global rescue package of $ 57 billion, which Egypt obtained last year to help it face the worst economic crisis it has been facing for decades, and the first batch (an investment of $ 35 billion from the Emirates has allowed the largest country in terms of population in the Middle East) to reduce the value of its currency by about 40% and the start of the transformation stage.

The private investment increased by 35.4% on an annual basis in the second quarter of the fiscal year in Egypt, while public investment shrinks by 25.7%, and the Minister of Planning and International Cooperation Rania Al -Mashat said this change indicates “a shift in the investment scene in Egypt.”

She added, “The scales have turned,” noting that the funding provided by international institutions to the private sector in Egypt in 2024 is the funding provided to public institutions for the first time. It is expected that Egypt will also obtain investment guarantees from the European Union worth $ 1.8 billion through these institutions.

https://www.youtube.com/watch?v=0eltnouj8a

The growth of sectors during the quarter

• The activity of non -oil manufacturing ranked 17.74% compared to the corresponding quarter of last year.
• The tourism sector grew 18% after the number of visitors to 4.41 million visitors.
• The Suez Canal revenues shrink 70% as a result of geopolitical tensions in the Bab al -Mandab area.
• The growth of the delaying activity decreased 9.2% against the backdrop of the decrease in oil extraction activity of 7.5% and 19.6% gas activity.