Egypt’s real GDP likely to hit 4.2% in FY 2022/23
Updated 5/14/2023 8:39:00 AM
Arab Finance: Egypt’s real gross domestic product (GDP) is predicted to hit 4.2% in the current fiscal year (FY) 2022/2023, compared to a growth rate of 6.6% in the previous FY, according to the Ministry of Finance’s draft budget report.
Preliminary indicators for the first nine months of FY 2022/2023 showed a budget deficit of 5.5% of the country’s GDP, resulting from the devaluation of the Egyptian pound against the US dollar, along with the significant increase in interest rates locally and globally.
Moreover, the primary surplus of the budget for the period from July 2022 to March 2023 amounted to EGP 50 billion, or 0.51% of GDP, versus a primary surplus of EGP 32 billion during the same period of the previous FY.
The report revealed that the government investments funded by the state’s public treasury surged in the nine-month period by 40% year on year (YoY), reaching around EGP 161 billion.
In addition, the amounts allocated for purchasing goods and services during the July-March period rose 28.3% YoY, while allocations for food subsidies increased by 47.8%.
Meanwhile, the government’s allocations for the education sector grew by 14.7% to EGP 151 billion and by 10.5% for the health sector to reach EGP 93 billion
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