Egypt’s GDP growth rate was 2.4% in the fourth quarter of 2023/24, bringing the annual growth rate to 2.4%, down from 3.8%. of the previous year, the planning ministry said on Thursday.
The planning ministry attributed the slowdown to ongoing geopolitical tensions and global economic uncertainty, as well as the government’s contractionary policies.
These policies aimed to restore macroeconomic stability, with strengthening public investment governance being a key policy, the ministry said.
Egypt has promised the International Monetary Fund to reduce state involvement in the economy and allow private companies to play a much bigger role, which is a prerequisite for obtaining a loan of 8 billion dollars from the IMF.
“Against the backdrop of current geopolitical tensions and global economic uncertainty, key sectors of the Egyptian economy have been affected, leading to a decline in economic activity,” the ministry said in a statement.
“This was particularly evident in Suez Canal activity, which saw a sharp decline of 68% during the fourth quarter of the fiscal year,” the ministry added.
Suez Canal revenue fell to $6.6 billion in 2023/24 from $8.8 billion the previous year, central bank said Tuesday, victim of attacks on Red Sea shipping by the Houthis of Yemen, who claim to act in solidarity with the Palestinians of Gaza.
