Egypt’s GDP Growth Slows to 2.4% for 2023/24, Reports Planning Ministry

CAIRO (Reuters) – Egypt’s GDP growth rate stood at 2.4% in the fourth quarter of the 2023/24 fiscal year, resulting in an annual growth rate of 2.4%, a decline from 3.8% the previous year, as reported by the planning ministry on Thursday.

The slow growth has been attributed to ongoing geopolitical tensions and global economic uncertainties, along with the government’s contractionary policies aimed at restoring macroeconomic stability. A significant focus of these policies has been strengthening governance in public investments.

Furthermore, Egypt has made commitments to the International Monetary Fund (IMF) to reduce the state’s role in the economy and enhance the involvement of private companies, a necessary condition for securing an $8 billion loan from the IMF.

In a statement, the planning ministry noted, "Amid ongoing geopolitical tensions and global economic uncertainty, key sectors of the Egyptian economy have been impacted, leading to a decline in economic activity."

The ministry highlighted that this decline has been particularly pronounced in Suez Canal activity, which saw a sharp drop of 68% during the fourth quarter of the fiscal year.

Revenue from the Suez Canal fell to $6.6 billion in the 2023/24 fiscal year, down from $8.8 billion the prior year, according to the central bank. This decline is attributed to attacks on Red Sea shipping by Yemen’s Houthis, who claim their actions support Palestinians in Gaza.