Egypt anticipates at least 5 percent economic growth this fiscal year says minister to IMF

Egypt is anticipating an economic growth rate of at least 5% by the close of the fiscal year, as confirmed by Planning Minister Rania Al-Mashat. This projection was discussed during a recent meeting with an International Monetary Fund (IMF) mission in Cairo.

Positive GDP Growth Indicators

Al-Mashat revealed that the nation’s Gross Domestic Product (GDP) growth recorded an impressive 5.3% in the first quarter, surpassing expectations. This robust performance can be linked to a surge in industrial production, particularly in key sectors such as:

• Vehicles
• Textiles
• Ready-made garments

The growth in these sectors underscores a strategic shift towards productivity and tradable goods.

Reforms and Investment Strategies

To ensure macroeconomic stability, the Egyptian government is adhering to a public investment ceiling of EGP 1 trillion established last fiscal year. This financial discipline has paved the way for increased private-sector investments.

Al-Mashat highlighted key structural reforms including the formation of a State-Owned Enterprises Unit. This unit is tasked with maximizing asset value and evaluating the best scenarios for state-owned companies, aligning with the State Ownership Policy Document which promotes private sector involvement.

Economic Development Framework

The minister introduced “Egypt’s Narrative for Economic Development,” a strategic framework aimed at transforming the economic model to prioritize production and exports. Additionally, the ministry’s “Quarterly GDP Note” has been enhanced to include data on structural reforms, bolstering transparency.

Climate Policy Initiatives

Regarding climate initiatives, Al-Mashat mentioned the addition of two new projects to Egypt’s “NWFE” platform, aimed at advancing the transition to renewable energy sources. The government is also working to integrate environmental considerations into public investment criteria to mitigate climate-related risks to assets.

Monitoring Public Investment Efficiency

To further enhance public spending efficiency, the ministry is deploying the “Adaa” system. This system seeks to connect allocated funds to specific outcomes, ensuring that national and sectoral policies are effective.

With these initiatives and reforms, Egypt is poised to navigate its economic challenges while fostering growth, investment, and sustainability.