Cairo, (Business News Report)|| The Egyptian economy is expected to grow by 6% during the current fiscal year, driven by the growth spurt achieved in the first quarter.
The Minister of Planning and Economic Development, Hala Al-Saeeda, said that the Egyptian economy will grow by 6% during the current fiscal year, which ends at the end of next June.
The Minister of Planning is betting on the growth boom during the first quarter of this year, which amounted to 9.8%, the highest growth rate in 20 years.
Al-Saeeda affirmed the contribution of the measures, policies and efforts taken by the Egyptian state, in enhancing the elements of resilience of the Egyptian economy in the face of the crisis, explaining that this was reflected in the positive indicators witnessed by the Egyptian economy.
She added that despite the repercussions of the pandemic, the Egyptian economy succeeded in achieving a growth rate of 3.3% during the fiscal year 2021/20 and 3.6% in the year 2020/19.
Egypt was one of a limited number of countries in the world that achieved growth during the pandemic.
Inflation rate
In a separate context, the inflation rate in Egypt rose to its highest level in 31 months, at the end of last January.
The Central Agency for Public Mobilization and Statistics (CAPMAS) said that the inflation rate reached 7.3% at the end of January, while it was 5.3% in December.
The inflation rate in Egypt has never recorded such high rates since August of 2019, when it reached 7.5%.
The Central Bank of Egypt’s inflation target is 7%, plus or minus two percentage points until the end of 2022. Inflation in Egypt jumped after the state liberalized the exchange rate at the end of 2016.
Inflation figures in cities during January were higher than the expectations of investment banks, which ranged between 6.9-7%.
Radwa Al-Swaify from Al Ahly Pharos Securities said: “Our expectations were that inflation would rise at a rate of 7% on an annual basis and 1.6% on a monthly basis, mainly due to the increase in the prices of vegetables and beverages. The numbers were higher than expectations.”
