Egypt targets 7% growth rate in 2022: Min.

CAIRO – 24 February 2018: Egypt is targeting a growth rate of 5.8 percent in fiscal year 2018/19 and 7 percent in 2022, Planning Minister Hala al-Saeed said Saturday.

Saeed said that the government aims to achieve growth rates of 6.2 percent, 6.6 percent and 7 percent in fiscal years 2019/20, 2020/21 and 2021/22 respectively.

The minister added that the government wants to raise investment rates from 16.4 percent in 2017/18 to 18 percent in a year, saying that the government targets 21.7 percent investment rate in 2021/22.

Saeed also referred to the significant rise in Egypt’s foreign reserves, which, standing at $38.2 billion in January, are enough to cover imports for 8 months, she said.

Egypt’s growth rate in the second quarter of fiscal year 2017/2018 increased to 5.3 percent, compared to 5.2 percent in the first quarter of the same year, Saeed said in previous statements.

Banking sources predicted Saturday the country’s foreign reserve to surpass $41 billion for the first time after Egypt received the proceeds from its recent eurobond issuance, which amounted to $4 billion.

Egypt returned to the international bond markets on February 14 with issuing Eurobonds worth $4 billion on three tranches; three, five and 30 years, the Finance Ministry said in a statement.

The purchase requests exceeded $12 billion in the first few hours after the issuance despite the volatility of the international stock markets, the statement said.