Egyptian economy grows by 3.9% in 2Q 2022/23

Shaimaa Raafat
4 Min Read

Minister of Planning and Economic Development Hala El-Said has presented performance indicators of the Egyptian economy during the second quarter (2Q) of the current fiscal year (FY) 2022/2023, as well as the first half of the same year.

During a cabinet meeting, chaired by Prime Minister Mostafa Madbouly, El-Said stated that Egyptian economy continued to grow during 2Q 2022/23 by 3.9%, according to the preliminary data of the Ministry of Planning, despite the global economic situation and the state of uncertainty imposed by global economic and geopolitical challenges and changes.

On sectoral growth, the minister said that there is an improvement in growth rates of some economic sectors in 2Q 2022/23 compared to 2Q 2021/22, noted that sectors of communications, agriculture, wholesale and retail trade, real estate activities and services Business, social services and construction contributed 80% to the GDP growth.

She explained that according to preliminary data, the growth rate of the Egyptian economy during the first half of the current FY was estimated at 4.2%, added that despite current effects of the Russian-Ukrainian crisis, which is likely to extend its effects during the next year, Egyptian economy is expected to grow by about 4.2% by the end of FY 2022-2023.

“Despite the state’s success in curbing inflation and reducing it from very high levels (25% in 2016-2017) to less than 5% in 2020-2021, inflation rate has increased again by about 15% in 2022, and it continued to hike, especially after the Russian-Ukrainian crisis, to approach 33% in February 2023, as a result of a number of factors,” the minister elaborated. “Suez Canal revenues reached $2.2bn in 2Q 2022/23, with a monthly average of $722m, compared to around $1.7bn in the corresponding quarter of the previous year, with a monthly average of $561m.”

The minister touched on unemployment rates, which achieved a noticeable decrease, to reach 7.2% during 2Q 2022/23, as the rate of contribution to economic activity increased to reach 42.8% during the current FY, and foreign affairs sector’s performance indicators also improved in the period (July-September) of the FY 2022-2023. Hence, total exports increased by 12.4%, net foreign direct investment by 94%, as well as an increase in petroleum and non-oil exports.

She further presented developments in global growth rate, which continues to slow down, noting that there are expectations of a continued decline in global growth to 2.9% during the current calendar year, down from 3.4% in 2022, and 6% in 2021.

There are expectations indicating an improvement in the growth rates of the global economy, which will rise to 3.1% in 2024, led by the economies of developing countries, according to Elsaid.

The global trade activity declined during 2022 to 5.4%, with a further slowdown expected to reach 2.4% during the current year. The reasons for this slowdown are attributed to the repercussions of the Russian-Ukrainian crisis, but at the same time, there are expectations for an increase in global trade activity to 3.4% in 2024, she concluded.

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