Egypt announced today, Tuesday, that the growth rate of its national economy during the first half of the fiscal year 2022-2023 amounted to 4.2%, down from 9% during the same period of the last fiscal year.

“The growth of the Egyptian economy during the second quarter of the current fiscal year increased by 3.9%, despite the global economic situation and the state of uncertainty imposed by global economic and geopolitical challenges and changes,” according to a statement by the presidency. The government published it on its official Facebook page.

The minister indicated that there is an improvement in the growth rates of a number of economic sectors in the second quarter of the fiscal year 2022-2023 compared to the corresponding quarter of the last fiscal year, noting that the sectors of communication, agriculture, wholesale and retail trade, real estate activities, business services, social services, and construction contributed 80%. in GDP growth.

It indicated that the revenues of the Suez Canal amounted to $2.2 billion in the second quarter of the current fiscal year, with a monthly average of $722 million, compared to about $1.7 billion in the corresponding quarter of the previous fiscal year, with a monthly average of $561 million.

Hala Al-Said attributed the growth of these revenues to the marketing policies pursued by the Suez Canal Authority to attract new shipping lines to cross through the Suez Canal, and some global variables that led to an increase in the savings achieved by the Suez Canal compared to alternative routes in light of the high prices of ship rentals, freight haulers, the rise in oil prices, and the change Map of world trade due to the Russian-Ukrainian crisis.

She noted that the unemployment rates achieved a remarkable decrease to reach 7.2% during the second quarter of the current fiscal year, as the rate of contribution to economic activity increased to reach 42.8% during the aforementioned quarter.

The minister added, "According to preliminary data, the growth rate of the Egyptian economy during the first half of the current fiscal year was estimated at 4.2 percent."

It is noteworthy that the growth rate of the Egyptian economy reached about 9% during the first half of the fiscal year 2021-2022, which is the highest semi-annual growth rate since the beginning of the millennium.

And she added, "Despite the current effects of the Russian-Ukrainian crisis, whose effects are likely to extend over the next year, the Egyptian economy is expected to grow by about 4.2% by the end of the fiscal year 2022-2023."

The Egyptian government had aimed to achieve a growth rate of 5.7% during the current fiscal year, before lowering its forecasts to 5.5% due to the Russian-Ukrainian crisis.

Economist Dr. Walid Gaballah commented on the decline in the growth rate of the Egyptian economy from 9% during the first half of the year 2021-2022 to 4.2% during the same half of 2022-2023, saying that the recent growth rate is "an expected rate that revolves around the expectations of many institutions." International, especially with the Egyptian government maintaining the rate of government investments determined in the state's general budget.

Gaballah, a member of the Egyptian Society for Political Economy, told Xinhua that "the state is still following measures to stimulate growth through government investments, in addition to the fact that the Egyptian economy has what drives it to achieve a growth rate in connection with the nature of the economy itself."

He continued, "The Egyptian economy has already succeeded in achieving a growth rate of 9% during the first half of the year 2021-2022, after it recovered from the repercussions of the Corona virus crisis, and it was expected to continue achieving high growth rates, but with the outbreak of the Russian-Ukrainian crisis, growth rates declined significantly." Especially since there were difficulties facing the Egyptian government to take measures to stimulate growth, especially after it pumped a lot of spending in order to absorb the repercussions of Corona.

And the Egyptian expert added, "The Egyptian economy is still suffering from the repercussions of the Russian-Ukrainian crisis, and its growth rates are still less than the target, and if it achieves a growth rate of 4.2% by the end of the year 2022-2023, this rate, although it is less than the previous targets, is considered a good rate and success." Significant in light of the continuation of the Russian-Ukrainian crisis, which put the Egyptian economy under great pressure and the Egyptian government's austerity measures to control public spending.

Among the negative repercussions of the Russian-Ukrainian crisis, which faced the Egyptian economy, were the high inflation rates in Egypt's trading partner countries, the problem of supply chains, and the raising of interest rates by the US Federal Reserve, which created great challenges for the Egyptian economy, according to Gaballah.