Egypt’s Minister of Planning reviews FY 23/2024 plan before the Senate

Dr. Hala El-Said, Minister of Planning and Economic Development, said that the development plan for the year 2023/2024 seeks to achieve an economic growth rate of about 4.1% in the year 2023/2024, compared to an expected growth rate of 4.2% in the year 2023/22.

She explained that these estimates were similar to those of all international institutions. This indicates that Egypt is expected to achieve a growth rate of 4% - 4.3% in 2023/22 and 2023/23.

This came during the discussion of the report of the Financial, Economic, and Investment Affairs Committee regarding a draft law approving the economic and social development plan for fiscal year 2023/2024, before the Senate plenary session.

El-Said added that despite the estimated growth rate of the plan, which amounts to 4.1%, which is lower than what was previously targeted under normal circumstances, which was estimated at 5%-5.5% at the time, it is higher than the expected growth rates in most countries and higher than the general average achieved at the level of the global economy in 2022 and 2023, which are 3.4% and 2.8%, respectively.

Moreover, she added that it is estimated that the gross domestic product in the year of the plan will reach about EGP 11.84 trillion at current prices. This is compared to EGP 9.8 trillion, the value of the expected output for the previous year (2022/2023), recording a growth rate of 4.1% at constant prices.

Regarding the sectoral indicators, El-Said indicated that high growth rates are expected to be achieved in the output of five sectors represented in communications by 16.8%, tourism by 12%, the Suez Canal by 11.9%, construction by about 6%, and health services by 5.2%. Education services by 5.1%, and agriculture by 4.1%.

She added that to achieve the desired economic growth rate, the plan aims to increase total investments to reach EGP 1.8 trillion, including inventory changes, compared to investments of EGP 1.32 trillion in the previous year 2022/21, with a growth rate of 36%.

Dr. Hala El-Said attributed the estimated investment boom during the year of the plan to several considerations, taking into account the expected price changes during the year that affect the real value of the nominal investments implemented, which include the large volume of investments directed to human development from school education services, university education, scientific research, and health services. 

Dr. Hala El-Said, Minister of Planning and Economic Development, stated that the expected investment rate for 2024/23 is 15.2%, noting that the medium-term plan aims to steadily raise the investment rate to about 20% by the end of the project in 2026/25.

El-Said talked about the investment directions of the plan, noting the focus on priority sectors and the structural economic and social reform program, represented in agriculture, manufacturing industry, communications, and information technology, in addition to the development of medium and small projects to expand the absorptive capacity of the labor market to provide more than 900,000 job opportunities.

As well, El-Said added that the directions of the plan also included the intensification of investments directed to the education sector, primarily technological and technical education, as well as those allocated to the health sector in the field of developing and disseminating primary health care, with an intensification of interest in the preventive and curative medicine departments for virus diseases.

Regarding the participation of the private sector, El-Said confirmed that the state relies on the private sector to accelerate economic growth and revitalize markets, noting that the plan adopts ambitious targets for private investments to reach about EGP 600 billion in 2024/23, at a rate of about 36% of the total targeted investments, compared to an expected percentage in 2022/2023 within the limits of 31%, and an actual rate of 29% in 2021/2022.