CAIRO - 26 May 2024: Egypt's Minister of Planning and Economic Development, Hala El Said, has presented the targets and investments of the country's economic and social development plan for the fiscal year 2024/2025 before the Senate.
El Said noted that the plan targets a real economic growth rate of 4.2 percent in 2024/2025, compared to the expected low rate of 2.9 percent in the current fiscal year 2023/2024. This increase is attributed to the government's efforts to mitigate the direct impact of the ongoing economic and geopolitical crises that have affected the global and regional landscape.
According to the minister, the targeted growth rate is expected to drive the gross domestic product (GDP) at current prices to reach EGP 17.3 trillion by the end of the 2024/2025 plan, up from the expected EGP 13.9 trillion in the current fiscal year.
El Said highlighted the sectors that are expected to be the main drivers of economic activity and rapid growth, including communications, wholesale and retail trade, agriculture, real estate activities, and social services such as: education and health.
El Said revealed that the total volume of targeted investments has increased to exceed 2 trillion pounds for the first time, up from the expected 1.65 trillion pounds in the current fiscal year and the actual 1.3 trillion pounds in 2022/2023. This reflects the government's emphasis on investment as a primary driver of growth alongside private consumer spending.
The minister explained that the investment rate is expected to increase from 11.9 percent in 2023/2024 to 13 percent in the upcoming fiscal year, with a further rise to 17 percent in the last year of the medium-term plan (2025/2026) due to the anticipated boom in both local and foreign private investments.
El Said also elaborated on the plan's focus on developing and raising the efficiency of public investments, including mechanisms such as prioritizing the completion of ongoing projects, linking investments to performance rates, and ensuring an equitable distribution of local investments across the governorates.
Furthermore, the plan allocates a significant portion of public investments, amounting to EGP 268 billion or 27 percent of the total, to the education, health, and social services sectors.
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