{"id":646966,"date":"2024-10-03T00:00:00","date_gmt":"2024-10-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/03\/egypts-economy-grew-2-4-in-fy-2023-24\/"},"modified":"2024-10-03T00:00:00","modified_gmt":"2024-10-03T00:00:00","slug":"egypts-economy-grew-2-4-in-fy-2023-24","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/03\/egypts-economy-grew-2-4-in-fy-2023-24\/","title":{"rendered":"Egypt\u2019s economy grew 2.4% in FY 2023-24"},"content":{"rendered":"

Good afternoon, friends, and happy Thursday. <\/strong>It\u2019s a wrap for a busy work week, and we\u2019re ready to welcome the long weekend with open arms.<\/p>\n

EnterpriseAM Egypt won\u2019t be landing in your inbox on Sunday in observance of Armed Forces Day,<\/strong> along with other private and public sectors, as well as banks and the EGX, but we\u2019ll be back at our customary time on Monday.<\/p>\n

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THE BIG STORIES TODAY<\/p>\n

#1- Egypt\u2019s GDP growth slows in FY 2023-24:<\/strong> GDP growth came in at 2.4% in 4Q 2023-24, bringing the GDP growth rate for the full fiscal year to 2.4%, Planning, Economic Development, and International Cooperation Minister Rania Al Mashat announced<\/a> at a press conference earlier today. That\u2019s compared to the 3.8% growth rate recorded during the previous fiscal year. <\/p>\n

Driving the decline:<\/strong> The lower GDP growth rate came as geopolitical tension and volatility in the global economy put pressure on the Egyptian economy, particularly with \u201cthe government\u2019s contractionary policies aimed at restoring macroeconomic stability \u2014 strengthening the governance of public investments being a key policy,\u201d the ministry said. Suez Canal activity dropped 30% y-o-y in FY 2023-24, with a \u201csharp 68% contraction recorded in the last quarter alone,\u201d the ministry said. <\/p>\n

These drops were offset by growth in other sectors<\/strong>, including communications and information technology, tourism, wholesale and retail trade, transport and storage, and social services, including education and health. <\/p>\n

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#2- Business activity is back to contraction territory: <\/strong>Egypt\u2019s non-oil private sector activity contracted in September, as higher cost inflation dampened sales and new orders during last month, the S&P Global\u2019s Egypt Purchasing Managers (PMI) index shows (pdf)<\/a>. The September index reading came in at 48.4, down from 50.4 in August, which was the single month of expansion the country\u2019s non-oil private sector had witnessed since November 2020.<\/p>\n

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THE BIG STORY ABROAD<\/p>\n

Picking up where we left off this morning, Israel\u2019s escalating attacks on Lebanon <\/strong>continue to lead the front pages in the international press.<\/strong> The Israeli military issued evacuation notices for citizens in more than 20 towns in southern Lebanon, after launching a second attack on central Beirut overnight. The evacuation warnings, which \u201cincluded the provincial capital Nabatieh, suggesting another Israeli operation designed to further weaken Hezbollah is imminent.\u201d Meanwhile, Israel is still considering the extent of its retaliation against Iran after Tehran fired missiles into Tel Aviv on Tuesday \u2014 itself a retaliatory attack for Israel\u2019s assassination of Hezbollah leader Hassan Nasrallah and several other attacks in Lebanon and Gaza. (Reuters<\/a> | Bloomberg<\/a> | Wall Street Journal<\/a> | New York Times<\/a> | Financial Times<\/a>)<\/p>\n

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