The Economic Pulse

The Ministry of Planning and Economic Development recently announced new data on Egypt's macroeconomic performance for the fiscal year 2023-24, highlighting a mix of achievements and challenges. The country faced external pressures, including geopolitical tensions and supply chain disruptions, along with domestic contractionary policies aimed at stabilizing the economy. Despite these obstacles, key sectors such as tourism, foreign direct investment (FDI), and technology demonstrated resilience and growth, providing optimism for Egypt’s future economic prospects.

One of the most positive developments during the year was the record-breaking rise in Foreign Direct Investment (FDI) of which, US$ 40.5 billion was achieved in H2 of FY 2023/2024). Furthermore, Egypt's net foreign reserves also grew steadily, reaching USD 46.737 billion by the end of September 2024.. Meanwhile, Egypt maintained a net foreign asset surplus for the fourth consecutive month, standing at USD 9.7 billion in August, though down from USD 13.3 billion in July due to shifts in the commercial banking sector.

However, these positive developments were offset by several economic challenges. GDP growth slowed to 2.4% in FY2023-24, down from 3.8% the previous year, as external shocks and contractionary domestic policies constrained economic expansion. The current account deficit widened significantly to USD 20.8 billion, compared to USD 4.7 billion in 2022. This was largely due to a 24.3% decline in Suez Canal revenues, which fell to USD 6.6 billion year-on-year.