Cairo – November 2, 2023: Egyptian Minister of Planning and Economic Development (MPED) Hala El-Said revealed that Egypt’s real annual economic growth rate reached 3.8 percent in the previous fiscal year, as she reviewed the country’s economic performance for FY2022/2023.
The government’s target for the next fiscal year (FY2023/2024) is set at 4.2 percent, she stated during a cabinet meeting chaired by the Prime Minister on Thursday.
Egypt’s economic growth during FY2022/2023 displays the economy’s resilience, with the minister highlighting that it occurred during several ongoing global economic and geopolitical challenges, such as rising global inflation and the Russian-Ukraine war.
Gross Domestic Product (GDP) in FY2022/2023 amounted to LE 10.2 trillion, with a target of reaching LE 9.2 trillion for the current fiscal year, she noted.
Foreign direct investment (FDI) flows hit $10 billion in 2022/2023, representing a 12.8 percent increase compared to the previous financial year, according to El-Said.
The minister noted that many sectors reported positive growth in the previous fiscal year, 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 percent 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.
Despite successful efforts in controlling inflation, Egypt’s inflation rate rose to around 24.8 percent in 2022/2023, El-Said explained while discussing inflationary trends. She added that this figure was mainly accelerated by the exchange rate float and higher import costs.
She pointed out that 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.
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