This came in response to a recent report by the World Bank Group (WBG), which forecasts economic growth to rise to 3.8% in the current fiscal year and then to 4.2% in the next fiscal year. The IMF also forecasts Egyptian economic growth to reach 3.8% in the current fiscal year and 4.3% in the next fiscal year.
Dr. Al-Mashat explained that these forecasts reflect
the tangible results of the structural reforms implemented by the state, which
focus on improving the investment environment, supporting the private sector,
and enhancing the economy's resilience to shocks. She noted that the government
aims to achieve comprehensive and sustainable economic growth that contributes
to creating real job opportunities and improving living standards, which
requires continuing and expanding the scope of reforms.
She also stressed the country's strategic shift towards
economic growth based on tradable and exportable sectors, through stimulating
investments, localizing industry, and the integrated measures the government is
implementing in terms of simplifying investment procedures and reducing customs
clearance time.
The WB expected that gross domestic product (GDP) would
rise to 3.8% in the fiscal year 2025, and 4.2% in 2026, driven mainly by
private consumption, lower inflation, and a relative improvement in investor
confidence.
The Ministry of Planning, announced the economic
performance results for the second quarter of fiscal year 2024/2025 as part of
its periodic reports on the economic performance of the Arab Republic of Egypt.
The GDP recorded a growth rate of 4.3%, compared to 2.3% in the corresponding
quarter of the previous fiscal year. This growth is attributed to the Egyptian
government's adoption of clear policies to consolidate macroeconomic stability and
govern investment spending.
During the period, non-petroleum manufacturing activity achieved a positive growth rate for the third consecutive quarter, reaching 17.74%, compared to the same period of the previous fiscal year, during which activity recorded a contraction rate of 11.56%. This growth was driven by an increase in industrial production as a result of facilitating customs release of raw and primary materials for the industrial sector. This recovery in industrial activity was reflected by the manufacturing index (excluding crude oil and petroleum products), which reached 17.7% during the second quarter of fiscal year 2024/2025. The main sectors stimulating this growth included the automotive industry (73.4%), ready-made garments (61.4%), beverages (58.9%), and textiles (35.3%).