Egypt predicts economic growth to reach 4.2% by end of FY2024: Minister of Investment

Cairo – August 8, 2024: In a recent cabinet meeting, Minister of Investment and Foreign Trade Hassan El Khatib shared that Egypt expects its gross domestic product (GDP) to grow by 4.2 percent during the current fiscal year (FY2024/2025).

The investment minister also disclosed that they anticipate a growth rate of 5.5 percent in the coming FY, with projections at 6.5 percent by 2030.

Egypt’s latest expectations are in line with several forecasts from international institutions.

Reuters recently forecasted a growth rate of 4 percent for FY2024/2025, while the International Monetary Fund’s July projections were revised to 4.1 percent following the World Bank’s update which reaffirmed its expectations of a 4.2 percent growth rate in the current fiscal year.

El Khatib added that the government is looking to boost the percentage of private investments out of total investments to 70 percent by 2030, compared to the 25.5 percent anticipated during the current FY.

He also emphasized the importance of improving Egyptian exports, stressing that export growth is closely linked to a proactive development in investments, particularly within manufacturing industries.

The investment minister urged for the development of a new document outlining Egypt’s investment and trade policies for the next decade, including a plan to automate various investment procedures to improve the local investment climate.

Aiming to bolster investor confidence in the Egyptian business environment, the document would aim to boost the private sector’s involvement in the industrial and production sectors, and improve their ability to adopt new policies.

El Khatib highlighted taking advantage of the country’s industries’ competitive advantages, as well as government strategies to diversify the economy away from dependence on traditional sector.

The Ministry of Investment has developed various scenarios and prepared a statistical model to predict overall investment growth rates, taking into account many influencing factors, including the possibility of local, regional or global crises.