Minister of Planning, Economic Development and International Cooperation and Egypt's Governor at the World Bank comments on the World Bank's Regional Economic Prospects report:

 

 

Positive growth expectations for the Egyptian economy reflect the effectiveness of economic and structural reform policies.

Maintaining the path of economic reform to increase growth rates and enhance the economy's resilience and competitiveness.

 

We aim to achieve a strategic shift in the growth structure towards tradable and export-oriented sectors.

 

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Egypt's Governor at the World Bank, emphasized that the expectations of the two largest financial institutions, the International Monetary Fund (IMF) and the World Bank (WB), for an increase in the growth of the Egyptian economy in the current and next fiscal years, reflect the effectiveness of the economic reform policies adopted by the state.

 

This came as a comment on the recently issued report by the WB Group, in which it expected economic growth to rise to 3.8% in the current fiscal year and then to 4.2% in the next fiscal year.

The IMF also projected the growth of the Egyptian economy to 3.8% in the current fiscal year and 4.3% in the next fiscal year.

 

The Minister of Planning, Economic Development and International Cooperation affirmed that these expectations reflect the tangible results of the structural reforms implemented by the state, which focus on improving the investment environment, supporting the private sector, and enhancing the economy's resilience in the face of shocks.

 

H.E. Dr. Al-Mashat pointed out that the government aims to achieve comprehensive and sustainable economic growth that contributes to creating real job opportunities and improving living standards, which requires the continuation and expansion of the scope of reforms.

 

H.E. Minister Al-Mashat also reiterated the state's determination for a strategic shift towards economic growth based on tradable and export-oriented sectors, by stimulating investments, localizing industry, and the integrated measures that the government is implementing at the level of simplifying investment procedures and reducing customs clearance times.

 

In its report, the World Bank expected that GDP growth would rise to 3.8% in fiscal year 2025 and 4.2% in 2026, mainly driven by private consumption, lower inflation, and a relative improvement in investor confidence.

 

Earlier, the Ministry of Planning and Economic Development and International Cooperation announced the results of economic performance during the second quarter of the fiscal year 2024/2025 within its periodic reports on the economic performance of the Arab Republic of Egypt. The gross domestic product recorded a growth rate of 4.3% compared to a rate of 2.3% in the corresponding quarter of the previous fiscal year. This growth is attributed to the Egyptian government's adoption of clear policies aimed at consolidating macroeconomic stability alongside the governance of investment spending.

 

During the period, the non-petroleum manufacturing activity achieved a positive growth rate for the third consecutive quarter, reaching 17.74% compared to the same period of the previous fiscal year, in which the activity recorded a contraction rate of 11.56%.

This growth was driven by an increase in industrial production as a result of the facilitation of customs clearance for raw and primary materials for the industrial sector.

This recovery witnessed by the industrial activity was reflected in the index of manufacturing industry (excluding crude oil and petroleum products), which reached 17.7% during the second quarter of the fiscal year 2024/2025. The main sectors driving this growth included the automotive industry (73.4%), ready-made garments (61.4%), beverages (58.9%), and textiles (35.3%).