Egypt records 2.4% GDP growth in Q4 FY2023/24: Planning Ministry

Updated 10/4/2024 6:49:00 PM

Arab Finance: Egypt’s gross domestic product (GDP) experienced a growth rate of 2.4% during the fourth quarter (Q4) of the fiscal year (FY) 2023/2024, as per a statement by the Ministry of Planning and Economic Development.

This figure marks a decline from the previous fiscal year's growth rate of 3.8%.

The economy has faced multiple challenges, including successive external shocks, geopolitical tensions, and contractionary government policies aimed at restoring macroeconomic stability, particularly through enhanced governance of public investments.

Despite these hurdles, several sectors have demonstrated resilience and contributed positively to economic growth.

Notable sectors include communications and information technology, which have seen significant advancements; tourism, particularly in restaurants and hotels; transportation and storage; wholesale and retail trade; and social services, encompassing education and healthcare.

These rising growth rates in select sectors reflect the economy's potential for recovery and diversification, providing a silver lining amid broader economic challenges.

Economic activity is projected to improve in the upcoming period, driven by the government's unwavering commitment to implementing effective measures and policies aimed at fostering overall stability.

These efforts will stimulate private sector engagement, enhance the governance of public investments, and optimize the allocation of resources across various economic sectors, all in alignment with prioritized return and cost criteria.

The anticipated improvement is further supported by the implementation of structural reform policies. These policies are focused on three key areas: bolstering the resilience of the macroeconomy, enhancing economic competitiveness, and improving the business environment while facilitating a green transition.

Suez Canal activity has been significantly impacted by geopolitical tensions in the region, experiencing a staggering 30% contraction in FY 2023/2024 compared to the previous year.