Egypt’s economy set to grow 4.2%

Egypt’s economy is predicted to grow by 4.2 percent in the current fiscal year ending in June, the cabinet announced on Tuesday. This is considerably less than the previously anticipated growth rate.

According to the statement, gross domestic product grew by 3.9 percent in the second quarter of the fiscal year, which ran from October to December, while the unemployment rate fell to 7.2 percent. Economic growth declined from 4.4 percent in July-September, while the unemployment rate decreased from 7.4 percent in the same quarter. The Egyptian fiscal year begins in July and ends in June.

In the second quarter, Suez Canal revenues amounted to $2.2 billion, up from $1.7 billion in the same period the previous year. Egypt had projected in November that its economy would expand by nearly 5 percent in 2022/23. However, the latest data indicates that the growth rate will be lower than previously estimated.

Finance Minister Mohamed Maait announced in December that Egypt aims to achieve a GDP growth of 5.5 percent in the 2023/24 fiscal year. However, given the latest developments, this goal may be difficult to achieve. The country is struggling with rising prices and a budget deficit, as well as high levels of debt. The government has implemented a series of austerity measures in recent years, including subsidy cuts, tax hikes, and currency devaluations, in an effort to address these issues.