Egypt’s GDP growth slows to 2.4% for 2023/24 year, says planning ministry

CAIRO (Reuters) – Egypt’s GDP growth rate was 2.4% in the fourth quarter of the 2023/24 year, bringing the annual growth rate to 2.4%, down from 3.8% a year earlier, the planning ministry said on Thursday.

The planning ministry attributed the slow down to ongoing geopolitical tensions and global economic uncertainty, coupled with the government’s contractionary policies.

The policies were aimed at restoring macroeconomic stability with strengthening the governance of public investments being a key policy, the ministry said.

Egypt has promised the International Monetary Fund it will roll back the state’s involvement in the economy and allow private companies a much greater role, a requirement for its $8 billion IMF loan.

“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 said in a statement.

“This has been particularly evident in the Suez Canal activity, which experienced a sharp decline of 68% during Q4 of the fiscal year,” the ministry added.

Suez Canal revenue declined to $6.6 billion in 2023/24 from $8.8 billion the previous year, the central bank said on Tuesday, a victim of attacks on Red Sea shipping by Yemen’s Houthis who say they are acting in solidarity with Palestinians in Gaza.