Dr. Hala El-Saied, Egypt's Minister of Planning and Economic Development, highlighted Egypt's resilience and adaptability in the global economy amid successive, complex crises. These began with the COVID-19 pandemic, followed by geopolitical turmoil, supply chain disruptions, climate change impacts, and the Russian-Ukrainian crisis, which have led to increased pressure, resulting in rising prices and stagflation.
These remarks were made during a meeting of the Parliamentary Planning and Budget Committee chaired by Dr. Fakhry El-Fiqi on Wednesday evening. The session focused on reviewing the actual implementation of the state's economic and social development plan for the fiscal year 2022/2023, along with inquiries about sustainable development and strategic planning activities.
El-Said mentioned that countries are now prioritizing sectors like health and food security and are shifting towards green investment. She noted that Egypt is one of the top African countries in attracting direct investments. In comparison to other medium-growth countries, Egypt stands out, achieving a 3.8% economic growth rate in the fiscal year 2022/2023.
The Minister also mentioned a decline in the volume of implemented investments in 2022/2023, with government investments totaling 289 billion. She highlighted completed projects in the health sector, including 26 hospitals worth 9 billion Egyptian pounds, and 56 education projects comprising approximately 10,000 classrooms.
El-Said outlined the government's plan to rationalize investment spending in FY 2022/23, following presidential and cabinet directives to continue optimizing investment expenditure amid global challenges and their local repercussions. The Ministry directed not to initiate new projects unless absolutely necessary, prioritizing the completion of crucial and nearly finished projects (70% or more completion), and deferring non-essential foreign currency expenditures and project financing requests without comprehensive economic feasibility studies.
Egypt's position as a leading African destination for direct investments is reflective of its strategic economic reforms and robust development policies. The country's resilience in the face of global economic challenges is attributed to its diverse economy, strategic geographical location, and ongoing infrastructure and development projects.
The Egyptian government's focus on health, food security, and green investment aligns with global trends and sustainable development goals. This approach not only ensures economic growth but also addresses environmental concerns and social welfare.
The challenges posed by the global economic situation, including supply chain disruptions and the impacts of the Russian-Ukrainian crisis, have necessitated a prudent fiscal approach. Egypt's strategy to rationalize spending and prioritize essential projects demonstrates fiscal responsibility and adaptability in uncertain times.
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