Egypt’s Minister of Planning Hala Al-Saeed, said that Egypt has begun to reap the benefits of the government’s economic reform programme, achieving a growth rate of 5.2% during the first half (H1) of fiscal year (FY) 2017/2018, which represents the country’s highest growth rate in eight years.
The minister explained that the growth came as a result of achieving positive growth rates in all economic sectors.
She made the remarks during her speech at the Institute of National Planning’s international conference on Industrialisation and Sustainable Development, held from 5-6 May.
She added that the structure of economic growth has changed drastically, driven by investments and net exports, paving the way for the onset of a rising growth rate, resulting in a drop in the unemployment rate to its lowest level in four years, reaching 11.3% during the first half of the current FY.
Moreover, inflation fell to its lowest level in 22 months, reaching 13.1% in March 2018, while, the budget deficit was 64% during H1 FY 2017/2018, as a result of the growth in commodity exports by 15% and the 214% growth in tourism receipts.
The minister announced, at a press conference on the sidelines of the conference, that Egypt targets a real economic growth rate of 5.8% in the current FY, gradually increasing to 8% by the end of the medium-term sustainable development plan 2021/2022.
Al-Saeed said she expects the contribution of the industrial sector to GDP to achieve 20% growth next year.
Days ago, the minister said that the government targets increasing the private sector’s contribution to total investments to 56% during the next FY, compared to 48% this year.
According to the FY 2018/2019 plan, total investments to be implemented are worth EGP 943bn.