Egypt’s Economy Grew by 9.8% In Q1 FY 2021-22

A view of the city skyline and River Nile from Cairo tower building in the capital of Cairo, Egypt December 5, 2019. Reuters/Amr Abdallah Dalsh
A view of the city skyline and River Nile from Cairo tower building in the capital of Cairo, Egypt December 5, 2019. Reuters/Amr Abdallah Dalsh
TT
20

Egypt’s Economy Grew by 9.8% In Q1 FY 2021-22

A view of the city skyline and River Nile from Cairo tower building in the capital of Cairo, Egypt December 5, 2019. Reuters/Amr Abdallah Dalsh
A view of the city skyline and River Nile from Cairo tower building in the capital of Cairo, Egypt December 5, 2019. Reuters/Amr Abdallah Dalsh

Egypt's economy grew by 9.8% in the first quarter of the fiscal year 2021-22 that began in July, compared with 0.7% in the same period last year, Minister of Planning and Economic Development Hala al-Saeed said on Wednesday.

Egypt expects a GDP growth of 5.5-5.7% in FY 2021-22 that ends in June, she added.

Her remarks were made during a cabinet session chaired by Prime Minister Mostafa Madbouly, during which she reviewed the initial indicators of the country’s economic performance in the first quarter.

The restaurant and hotel sector recorded the highest quarterly growth rate of about 181.8 percent, reflecting the remarkable recovery from the coronavirus repercussions.

The telecommunications, manufacturing and construction sectors registered a growth rate of 16.3%, about 15.2%, and 10.5%, respectively.

The minister reviewed the contributions of various economic activities to the GDP during the first quarter of the current fiscal year, noting that the most contributing sectors are manufacturing, agriculture, trade, and real estate activities.

Egypt’s inflation rate rose to 8% on an annual basis and 1.6% on a monthly basis during September, Saeed said, attributing the rise to the higher global prices of energy, food commodities and minerals.



IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook

A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
TT
20

IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook

A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.

The International Monetary Fund warned on Friday that risks related to trade tensions continue to cloud the global economic outlook and uncertainty remains high despite some increased trade and improved financial conditions.

IMF First Deputy Managing Director Gita Gopinath said the fund would update its global forecast later in July given "front-loading ahead of tariff increases and some trade diversion," along with improved financial conditions and signs of continued declines in inflation.

In April the IMF slashed its growth forecasts for the United States, China and most countries, citing the impact of US tariffs on imports now at 100-year highs and warning that rising trade tensions would further slow growth.

At the time, it cut its forecast for global growth by 0.5 percentage points to 2.8% for 2025, and by 0.3 percentage points to 3%. Economists expect a slight upward revision when the IMF releases an updated forecast in late July.

According to Reuters, Gopinath told finance officials from the Group of 20 major economies who met this week in South Africa that trade tensions continued to complicate the economic outlook.

"While we will update our global forecast at the end of July, downside risks continue to dominate the outlook and uncertainty remains high," she said, in a text of her remarks.

She urged countries to resolve trade tensions and implement policy changes to address underlying domestic imbalances, including scaling back fiscal outlays and putting debt on a sustainable path.

Gopinath also underscored the need for monetary policy officials to carefully calibrate their decisions to specific circumstances in their countries, and stressed the need to protect central bank independence. This was a key theme in the G20 communique released by finance officials.

Gopinath said capital flows to emerging markets and developing economies remained sluggish, but resilient, in the face of increased policy uncertainty and market volatility. For many borrowers, financing conditions remained tight.

For countries with unsustainable debt, proactive moves were essential, Gopinath said, repeating the IMF's call for timely and efficient debt restructuring mechanisms.

More work was needed on that issue, including allowing middle-income countries to access the G20's Common Framework for Debt Restructuring, she said.