Egypt's economy is showing continued growth momentum, with preliminary indicators pointing to further improvement in the second quarter of the current fiscal year, according to Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat. Speaking at the American Chamber of Commerce's annual Ramadan Iftar on Tuesday evening, Minister Al-Mashat highlighted that reducing public spending is paving the way for greater private sector investment, enabling businesses to take the lead in Egypt's development journey. She also reaffirmed the government's commitment to strategic spending, directing resources toward high-priority sectors. Private Sector, Industry, and Technology Power Economic Expansion Egypt's non-oil manufacturing sector and technology industries are emerging as key drivers of economic growth, supported by a robust infrastructure that positions the country as a regional hub for trade and green energy. The minister emphasised Egypt's diversified economic base, which includes thriving sectors such as agriculture, manufacturing, and information technology, powered by a skilled and youthful workforce. She also pointed to the surge in digital entrepreneurship, fintech, and e-commerce, which is helping reshape the country's investment landscape. Key Economic Indicators Signal Recovery * GDP Growth Accelerates: Egypt's economy grew 2.4 per cent on average in 2023-2024, rising to 3.5 per cent in the first quarter, with further improvements expected. * PMI Index Reflects Business Confidence: The Purchasing Managers' Index (PMI) exceeded 50 points, signalling a recovery in business activity. * Private Investment Surges: Private sector investments now account for 63 per cent of total investments, reflecting a shift toward a market-driven economy. * Foreign Investment on the Rise: Foreign direct investment (FDI) inflows have significantly improved, bolstering foreign reserves and stabilising exchange rates. * Inflation Cools Down: Headline inflation fell to 12.8 per cent, while core inflation reached 10 per cent, helping to restore price stability and investor confidence. Tourism revenues are also on an upward trajectory, while the Suez Canal's performance has been impacted by global economic shifts. Minister Al-Mashat also highlighted that Egypt's economic transformation is driven by three key pillars: 1. Enhancing financial and monetary stability. 2. Boosting competitiveness and improving the business environment. 3. Expanding economic diversification and shifting toward green development. She underscored that structural reforms, not just short-term stability, are essential for long-term economic resilience, positioning Egypt as a regional powerhouse for trade, investment, and industrial innovation. Attribution: Amwal Al Ghad English
