Egypt achieves the highest quarterly growth rate in 20 years.. and experts: industry and tourism are behind the rise

Dubai, United Arab Emirates (CNN)– Egypt achieved a growth rate of 9.8% during the first quarter of the current fiscal year, which is the highest quarterly growth rate over the past two decades. In addition to the fact that various economic activities achieved positive growth rates during the first quarter, they expressed their fear that the Egyptian economy would be affected by the global inflation wave.

And the Minister of Planning and Economic Development Hala Al-Saeed expected, in an official statement, that the Egyptian economy will continue to achieve an annual growth rate that ranges between 5.5%-5.7% by the end of the current fiscal year, adding that the performance of the Egyptian economy during the first quarter confirms that it is able to recover from the repercussions of the Corona virus.

Banking expert, Mustafa Badra, said that Egypt’s achievement of the highest economic growth rate in the last 20 years amid the conditions of the emerging Corona virus pandemic, is a matter to be reckoned with for the Egyptian government, pointing to the most prominent sectors that led to achieving growth, which are manufacturing industries, trade, agriculture and tourism – and the latter witnessed remarkable activity during the period past- which had a positive impact in achieving the highest growth rate.

According to the government’s statement, the restaurant and hotel sector achieved the highest quarterly growth rate of 181.8 percent, reflecting the remarkable recovery of this sector after the repercussions of the “Corona” pandemic.

Badra pointed out, in exclusive statements to CNN in Arabic, to the great role of the manufacturing sector in achieving high growth; As a result of the government’s efforts, through several legislations and decisions taken during the last period, they bore fruit this quarter, despite the Corona pandemic.

The government stated that the manufacturing sector achieved the highest quarterly growth rate of 15.2% during the past two decades, after shrinking by 12.7% during the same quarter of the previous year, as a result of the improvement in the activities of the paper, pharmaceutical, beverage and clothing industries.

Badra linked Egypt’s continuation to achieving a high growth rate and the state’s ability to control the Corona pandemic by increasing the number of people receiving the vaccine, and dealing with the fifth wave of the pandemic, in addition to the continuation of operation and production in the productive sectors, and these factors are difficult to predict, except that the situation Stability of the current situation: Egypt will succeed in achieving the target growth rate between 5.5-5.7% during the current fiscal year.

According to Prime Minister Mostafa Madbouly, the Egyptian government aims to achieve high growth rates during the next three and four years, at rates of up to 7%, due to the reason he expected to praise the economic reform program by major international institutions after it was reflected in the decline in unemployment and inflation rates and the increase in gross domestic product. The value of international reserves and the budget deficit.

For his part, Ahmed Abu El-Saad, a member of the board of directors of the Egyptian Stock Exchange and head of a direct investment company, attributed the reason for achieving a high growth rate in Egypt during the first quarter of this year to the impact of the base year in the comparative quarter with a significant drop in growth to coincide with the emergence of the pandemic in Egypt. However, he stressed that achieving this growth indicates the solidity of the Egyptian economy at the time of the pandemic, and its natural recovery after the return to operation, which raises our expectations to achieve or exceed the target growth rate of 5.7% and achieve a growth rate of 6% during the fiscal year 2021/2022.

In exclusive statements to CNN in Arabic, Abu Al-Saad said that achieving a high growth rate is due to various reasons, including the return of tourism and the improvement of industrial production, pointing in this regard to the competitive advantage of the Egyptian industry due to the rise in gas prices globally, and the existence of local self-sufficiency.

Egypt succeeded in transforming from a liquefied natural gas importing country to an exporting country, after the start of production from the giant Zohr field and a number of major gas fields in the Mediterranean, and exported liquefied natural gas at a rate of up to one million tons during the first quarter of the current fiscal year, according to the Minister of Petroleum. Engineer Tariq Al Mulla.

A member of the board of directors of the Egyptian Stock Exchange said that the impact of the global inflation wave carries a risk to all emerging markets. Because it loses much of the ability of these countries to meet their basic needs at prices that suit their conditions and poverty rates, pointing out that the continued growth rate in Egypt is linked to the state’s continuation in establishing infrastructure projects and attracting foreign direct investments.

The Suez Canal achieved a growth rate of 20% during the first quarter of the fiscal year 2021/2022, with a significant recovery compared to the same quarter of the previous year, due to the increase in the canal’s revenues, the number of ships and tonnage, and the telecommunications sector maintained high growth rates, achieving a growth rate of 16.3 % as a result of the increase in high-speed Internet users, fixed-line subscribers, and the increase in data services revenues as a result of investment in digital infrastructure, according to an official statement.

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