Egypt eyes 4% economic growth, records lowest GDP loss globally – minister

Egypt’s economic growth is expected to reach four percent in 2020 with a GDP loss estimated at 105 billion pounds within in the financial year 2019/2020, which is the lowest among countries globally, said Planning Minister on Wednesday.

Hala El-Said’s comments were made during her participation in the plenary parliamentary session on Tuesday to discuss parliament’s budget and planning committee’s report regarding the financial year 2020/2021 budget plan, Ahram Online.

El-Said added that inflation reached five percent in May, the unemployment rate recorded 7.5 percent, and trade balance deficit declined to 36 percent.

On Egypt’s economic growth amid the COVID-19 crisis, she explained that the country is reaping the benefits of the national mega projects, with the total cost of 6 trillion pounds, which contributed to improving Egypt’s ranking in several global indices.

She added that investments in the information and communication technology sector have been raised in the financial year 2020/2021 budget plan by 300 percent, given that the COVID-19 crisis has proved the importance of this sector that witnessed investments worth 40 billion pounds over the past years.

She added that construction sector investments have increased by 77 percent, as the sector comprises a huge workforce.

She noted that 70 percent of slum areas across the country have improved.

More than 5 billion pounds were appropriated for industrial complexes, while investments in the health sector have been raised by more than 21 billion pounds, with an increase exceeding 72 percent on the allocations allocated of previous years, according to El-Said.

She added that 8 billion pounds were allocated for the neediest villages in the the financial year 2020/2021 budget, saying that the budget takes into account the fair distribution of investments through directing 60 percent of public investments towards lower-income and border cities.

“The COVID-19 crisis has affected several sectors in Egypt, such as tourism and aviation. Nonetheless, the Egyptian economic growth rate is still the best globally thanks to the diversity that the Egyptian economy has and the success of the country’s economic reform programme,” said El-Said.