Hala El-Said, Minister of Planning and Economic Development said that the Egyptian economy achieved good rates during the fiscal year 2005/06 until the global financial crisis in 2008, adding that the political and security developments in 2010/11 led to a decline in the growth rate to 1.8%. El-Said pointed out that the reform program in 2016 helped the country reach a growth rate of 5.6% until the outbreak of the corona pandemic, which led to a drop in rate to 3.6% in 2020.
This came during a meeting of the Financial and Economic Affairs Committee of the Senate to discuss a draft law approving the economic and social development plan for the fiscal year 2021/22.
Regarding the main targets of the development plan in 2020/21, El-Said indicated that the economy is expected to reach a growth rate of 2.8%, and 5.4% for next year 2021/22.
She added that the government targets an inflation rate of 5.6% this year and 6% next year, and an unemployment rate of 7.5% this year, and 7.3% in the next fiscal year.
On poverty rates, the minister indicated that it is expected to drop to 28.5% in line with the increase in the volume of investments in 2021/22 budget, adding that there are expectations of a reduction in the poverty rate of 1: 1.5 points annually in the coming years.
She emphasized that there is an increase in the volume of non-oil exports by about 10% to reach $19.5 billion within the framework of starting the structural reforms program, while continuing to increase the remittances of Egyptians abroad to 7% to reach $30 billion in 2021/22, after hitting $28 billion in the current fiscal year.
The minister added the Egypt foreign reserves are expected to increase with the start of the gradual recovery of the global economy and the tourism sector. “Egypt is expected to reach $6 billion in tourism revenues and $6 billion in the Suez Canal revenues, in addition to $7.4 billion in foreign investments,” El-Said noted.
The International Monetary Fund (IMF) expects a growth rate for Egypt at 2.8% in the FY 2020/21 and 5.5% in 2021/22, while The World Bank expects a growth rate of 5.8%, and Fitch’s forecast a 6%.
The International Monetary Fund (IMF) expects Egypt’s growth rate at 2.8% in the FY 2020/21 and 5.5% in 2021/22, while the World Bank expects a growth rate of 5.8%, and Fitch’s at 6%.