Annual economic growth hit 3.8% in FY22/23, expected at 4.2% for FY23/24: Planning Minister

Egypt’s real annual economic growth rate reached approximately 3.8% in the previous fiscal year, revealed H.E. Dr. Hala El-Said, Minister of Planning and Economic Development.

The government’s target for the next fiscal year (FY2023/2024) is set at 4.2%, she stated.

El-Said presented an extensive overview of Egypt’s economic performance for FY2022/2023 during a Thursday cabinet meeting chaired by the Prime Minister.

The country’s economic growth last fiscal year is significant, happening in the face of ongoing global economic and geopolitical challenges - such as rising global inflation and the Russian-Ukraine war - demonstrating the economy’s resilience, El-Said explained.

Egypt’s Gross Domestic Product (GDP) in 2022/2023 amounted to EGP 10.2 trillion, with a target of reaching EGP 9.2 trillion for the current FY.

Foreign direct investment (FDI) flows hit $10 billion in 2022/2023, representing a 12.8% increase compared to the previous financial year, according to the MPED minister.

Discussing inflationary trends in the local economy, El-Said pointed out that, despite successful efforts in controlling inflation, Egypt’s inflation rate rose to around 24.8% in 2022/2023, primarily driven by the exchange rate float and higher import costs.

There are expectations for a decline in inflation, especially with the implementation of the commodity price reduction initiative, which has already shown some positive effects, she stated.

El-Said highlighted several sectors that experienced positive growth during FY2022/2023, including tourism, communications and information technology, social services (health and education), and agriculture sectors, as well as the Suez Canal.

The IT sector’s growth was attributed to improved digital exports, a 22% increase in start-up investments, and expanded data services. Agricultural activity also achieved positive growth rates due to the expansion of contract farming and growing agri-food exports.