Egypt Today: Egypt’s Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, announced that the ministry is currently preparing the economic and social development plan for FY2025/2026. However, beginning FY2026/2027, the planning process will transition from an annual cycle to a three-year framework, in line with the Unified Public Finance Law.
Discussing the performance of the FY2023/2024 plan, Al-Mashat noted that the initially projected economic growth rate of 4.1 percent had slowed to 2.4 percent by the end of the fiscal year. This decline continues a downward trend from 3.8 percent in FY2022/2023 and 6.6 percent in FY2021/2022. The minister attributed this slowdown to external shocks, economic pressures, and geopolitical instability, which significantly affected key sectors, including the Suez Canal, petroleum, and manufacturing industries.
Despite these challenges, total executed investments for FY2023/2024 reached LE 1.626 trillion, reflecting a 5.8 percent increase compared to the previous year, with an execution rate of 98.5 percent of the targeted LE 1.65 trillion.
Public investments alone amounted to LE 926 billion, showing 6.3 percent growth year-on-year but achieving only 88 percent of the targeted LE 1.05 trillion. Consequently, the share of public investments within total investments fell to 57 percent, compared to the original target of 64 percent, aligning with the government’s strategy to encourage private sector-led economic growth.
Al-Mashat made these remarks during a meeting with the Senate’s Financial, Economic, and Investment Affairs Committee, where she reviewed the implementation of the FY2023/2024 investment plan.
The minister also highlighted positive GDP growth indicators in the first quarter of the current fiscal year, which stood at 3.5 percent. Additionally, she emphasized the positive impact of public investment governance measures and structural economic reforms, which have spurred a surge in private sector investments. In the first quarter of the current fiscal year, the private sector contributed 63 percent of total investments, surpassing public sector investments.
Regarding the FY2025/2026 development plan, Al-Mashat introduced a new methodology aimed at directing public investments toward priority projects that support Egypt’s sustainable development goals.
https://www.egypttoday.com/Article/3/139111/Egypt-Transitions-to-Medium-Term-Economic-Planning-in-FY2026-2027
