CAIRO – 29 December 2024: During a meeting with the Planning and Budget Committee of the House of Representatives, Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, emphasized that Egypt’s economy showed clear signs of recovery in the last quarter of FY2023/2024.
Early data for the first quarter of FY2024/2025 indicates that this positive trend is continuing despite ongoing challenges.
This recovery is attributed to the government’s reform initiatives, which focus on achieving macroeconomic stability and improving the governance of public investments.
Key economic sectors, particularly manufacturing, have shown significant improvements, with expectations for sustained growth as the government implements additional measures to support private sector activity and stabilize the economy.
Al-Mashat highlighted the resilience of Egypt’s economy, underpinned by its diverse structure and ongoing government efforts. She noted that these developments have garnered international recognition, with Fitch Ratings upgrading Egypt’s credit rating in November from B- with a positive outlook to B with a stable outlook. Similarly, Standard & Poor’s maintained Egypt’s rating at B-/B, also with a positive outlook.
The minister attributed these credit rating improvements to increased foreign investment inflows and prudent economic policies, including currency exchange rate liberalization, flexible monetary measures, and growing foreign reserves.
She also highlighted declining inflation rates, with core inflation showing a notable year-on-year decrease. Strategic goods experienced varied monthly reductions in inflation during the second half of 2024 compared to the first quarter.
Looking ahead, Al-Mashat projected a significant drop in inflation by February 2025, driven by favorable base-year effects and expected global reductions in commodity prices. She reiterated the government’s commitment to implementing mechanisms to stabilize prices and sustain economic progress.
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