Egypt’s gross domestic product (GDP) at current prices hiked 20 percent on an annual basis during fiscal year 2018/2019, reaching LE 5.3 trillion, according to Minister of Planning Hala el Saeed.
Saeed clarified in a statement that investment spending contributed by 40 percent to the GDP growth, adding that net change in exports represents 30 percent of GDP and 20 percent came from consumer expenditures.
She affirmed that the rate of growth achieved by the Egyptian state succeeded in creating added value and led to the generation of job opportunities, and the decrease in the unemployment rate, which reached 8 percent currently.
“Moreover, the private-sector investments rose 77 percent on a year-on-year (YoY) to reach LE 444 billion at the end of FY18/19, up from LE 250 billion, thanks to the economic reforms implemented by the government,” she said.
In November 2016, the Executive Board of the IMF approved a $12 billion loan as financial assistance for Egypt to support the Egyptian economic reform program.
Upon the board’s approval in November, Egypt floated its currency, losing around 50 percent of its value as part of the economic reform program, which imposed taxes, including the value-added tax (VAT), and cut energy subsidies, all with the aim of trimming the budget deficit.
She pointed out that the GDP investment rate reached 18.2 percent in FY18/19, stating that the government aims to raise this percentage to 20 percent in FY19/20.
With regard to the savings of the family sector, the minister said that it occupies the first position in non-governmental deposits and its contribution has increased to LE 2.2 trillion, which represents important savings and investment pot for the state.
Saeed indicated that the investment implementation rates this year reached 92 percent, up from 71 percent in the prior year, which means that there is an improvement and more accurate follow-up in the process of implementing investments.
Egypt Today
25/02/2020
