Latest news with #FY2023
Al-Ahram Weekly
4 days ago
- Business
- Al-Ahram Weekly
CBE sells €591.7 mln in T-bills at 2.25% yield - Economy
The Central Bank of Egypt (CBE) announced on Monday it sold €591.7 million in euro-denominated treasury bills (T-bills) at a weighted average yield of 2.25 percent, in an issuance conducted on behalf of the Ministry of Finance to help finance the state's budget deficit. According to CBE data, 26 bids were submitted by banks and institutions for a total of €726.7 million, with an average yield request of 2.36 percent. The ministry accepted around 20 bids, securing the targeted €591.7 million. T-bills are short-term government debt instruments, typically maturing within three to twelve months. The sale comes as Egypt's external debt rose to $155.2 billion in the first quarter of FY2024/2025, up from $152.8 billion in the final quarter of FY2023/2024. The government projects the public debt-to-GDP ratio will fall to 90 percent in FY2025/2026, which began on 1 July, compared to an average of 81–82 percent in recent fiscal years, citing measures to reduce domestic borrowing costs. Egypt's FY2025/2026 budget estimates total financing needs at EGP 3.6 trillion, up from EGP 2.8 trillion in the current fiscal year. Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
30-06-2025
- Business
- Al-Ahram Weekly
Egypt real GDP grows by 4.7% in 3Q of FY24/25 despite global uncertainty - Economy
Egypt's economy accelerated its recovery in the third quarter (3Q) of the current FY2024/2025 (January-March 2025), recording a growth rate of 4.77 percent, the highest quarterly performance in three years, according to a statement by the Ministry of Planning, Economic Development, and International Cooperation on Monday. This figure is nearly double the 2.2 percent recorded in the same quarter of FY2023/2024. This pushes the average growth rate for the first nine months of FY2024/2025 to 4.2 percent, up from 2.4 percent in the corresponding period of FY2023/2024. Minister of Planning Rania Al-Mashat said this robust performance reflects the growing resilience of the Egyptian economy, particularly amid mounting global geopolitical and financial volatility. The third-quarter GDP surge was primarily driven by sustained progress in the government's structural reform agenda under the National Structural Reform Programme, which focuses on macroeconomic stability, efficient public investment governance, competitiveness, and private sector empowerment. Key drivers of growth Among the key sectors driving Egypt's economic growth are non-oil manufacturing, tourism (including hotels and restaurants), and telecommunications. The non-oil manufacturing sector grew by 16 percent, marking its fourth consecutive quarter of positive growth and contributing 1.9 percent to the overall GDP growth. This follows a contraction of nearly four percent in the same quarter of FY2023/2024. Tourism also continued its strong rebound, growing by 23 percent year-on-year in 3Q. The sector hosted four million tourists during that quarter, generating 41 million tourist nights. Moreover, the telecommunications sector registered a solid growth rate of 14.7 percent. Other supportive sectors like financial intermediation (17.3 percent), insurance (7.7 percent), electricity (5.8 percent), and construction (3.1 percent) added further momentum to economic recovery. Additionally, Egypt's industrial production index (except petroleum products) rose by 16 percent. High-growth industries included motor vehicles (93 percent), ready-made garments (58 percent), beverages (34 percent), paper (20 percent), and textiles (17 percent). Export-led expansion, private investment boom On the expenditure side, net exports made a significant contribution to GDP growth, adding 2.7 percent. Exports surged by 54.4 percent, far outpacing the 18.7 percent growth in imports. Industrial exports of finished goods rose by 12.7 percent, driven by increased competitiveness and demand. The ready-made garments industry was a standout performer, growing by over 23.7 percent in the third quarter, a testament to Egypt's capacity to adapt to shifts in global trade dynamics. Private investment also grew impressively by 24.2 percent year-on-year at constant prices, accounting for 62.8 percent of total investment (excluding inventory) and outpacing public investment for the third straight quarter. This reflects investor confidence and the impact of pro-business policies aimed at harnessing the potential of the private sector. However, the steep 45.6 percent decline in public investment, which now accounts for only 37.2 percent of implemented investments, led to a negative contribution from overall investment, subtracting approximately 2.44 percent from GDP growth. Declining sectors and global headwinds Despite the upbeat overall outlook, some sectors continued to contract. The Suez Canal, affected by regional geopolitical tensions and lower shipping traffic, saw a 23.1 percent year-on-year decline in 3Q, though this was a notable improvement from the 51.6 percent contraction a year earlier. Meanwhile, the extractive industries sector continued to face pressure. Petroleum activity contracted by 9.5 percent, and natural gas extraction declined by 20.5 percent. However, the government expects upcoming field developments and discoveries to reverse this trend. Structural reform and outlook Minister Al-Mashat noted that the ongoing reform efforts are integral to Egypt's development vision, especially the shift toward a competitive, export-oriented, private sector-led economy. These efforts are also reflected in the broader Economic and Social Development Plan for FY2025/2026, which the parliament approved in June 2025. The new plan projects a 4.5 percent GDP growth rate for the next fiscal year, despite ongoing global uncertainties. It maintains a cap on public investment at EGP 1.154 trillion and emphasizes redirecting government spending toward human capital development. Approximately 47 percent of treasury-funded public investments are allocated to education, health, and social services. Recovery confirmed by indicators High-frequency indicators continue to point to a broad-based recovery. Egypt's Purchasing Managers' Index (PMI) reached 50.7 in January 2025, its highest in over four years. Though it dipped slightly to 49.2 in March, the index remained near the neutral mark, indicating relative stability in non-oil private sector activity. Preliminary data suggest that Egypt's full-year GDP growth in FY2024/2025 will exceed the four percent target, driven by solid non-oil manufacturing, strong export performance, and a recovery in private sector activity. This strong momentum positions the country for further gains in FY2025/2026. Impact of geopolitical risks contained The recent outbreak of war between Israel and Iran on 13 June initially raised concerns about broader regional volatility. However, the economic impact on Egypt's key markets has so far remained limited. Oil and commodity markets have shown resilience, enabling the government to maintain its FY2025/2026 targets. Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
23-06-2025
- Business
- Al-Ahram Weekly
Egypt remittance inflows surge by 39% in April to $3 bln: CBE
Remittances from Egyptians working abroad surged by 39 percent year-on-year in April, reaching about $3 billion, compared to $2.2 billion in the same month of 2024, the Central Bank of Egypt (CBE) announced Monday. According to CBE data, remittances from Egyptians working abroad rose by 72.3 percent in the first four months of 2025, reaching about $12.4 billion, compared to approximately $7.2 billion during the same period in 2024. Moreover, remittances jumped by 77.1 percent in the first 10 months of the current FY2024/2025 (July 2024 to April 2025), reaching about $29.4 billion, compared to approximately $16.6 billion during the same period in FY2023/2024. Remittances from Egyptians abroad are one of Egypt's most important sources of foreign currency, alongside tourism, the Suez Canal, and export revenues. According to CBE data, Egypt's net international reserves (NIRs) jumped to a record $48.143 billion in April. It is worth noting that the International Monetary Fund (IMF) is still negotiating with the Egyptian authorities regarding completing the fifth review. In May, an IMF team arrived in Cairo for the final discussion of the fifth review of the country's $8 billion EFF loan programme. Completing this review paves the way for Egypt to receive a tranche of $1.2 billion. Follow us on: Facebook Instagram Whatsapp Short link:
Zawya
11-06-2025
- Business
- Zawya
Egypt's external debt service rises 37% YoY in H1 FY2024/25
Egypt's external debt service rose 37% year on year (YoY) in the first half (H1) of the current fiscal year (FY) to $21.3 billion, according to data released by the Central Bank of Egypt (CBE). In H1 of FY 2023/2024, external debt service amounted to $15.5 billion The increase was largely driven by principal repayments, which reached $17.1 billion, and interest payments that registered $4.2 billion. Meanwhile, the external debt-to-GDP ratio recorded 42.9% at the end of 2024. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Egypt Today
28-05-2025
- Business
- Egypt Today
Significant progress in stabilizing economy under EFF program says IMF in post-review statement
Cairo – May 28, 2025: A recent statement from the International Monetary Fund (IMF) indicates significant progress in Egypt's efforts to stabilize its economy under the Extended Fund Facility (EFF) program, following a thorough review mission earlier this month. From May 6 to May 18, an IMF delegation led by Vladkova Hollar met with Egyptian officials in Cairo to discuss economic policies and evaluate advancements in implementing the EFF program's commitments. The team also examined economic prospects for the forthcoming fiscal year. The IMF raised Egypt's economic growth projection for FY2024/2025 to 3.8 percent, driven by a stronger-than-anticipated performance during the first half of the fiscal period, according to the fund. Private investment has also surged, rising from 38.5 percent of total investment in the first half of FY2023/2024 to nearly 60 percent in the same period of FY2024/2025. While inflation edged up slightly to 13.9 percent in April, it remains on a downward trend. Despite positive developments, the current account deficit remains broad, impacted by rising imports, decreased hydrocarbon output, and disruptions to the Suez Canal, which offset gains from tourism, remittances, and non-oil exports. The IMF noted that fiscal prudence is being maintained, with public investment spending kept within the budget ceiling for July to December 2024, aided by improved oversight of large public infrastructure projects. The mission welcomed Egypt's ongoing efforts to modernize tax and customs procedures, which are beginning to improve efficiency and build confidence among economic actors. The IMF stressed the importance of continuing to widen the tax base and streamline exemptions to enhance domestic revenue mobilization, critical for financing development and social programs. Furthermore, Egypt is developing a medium-term debt management strategy aimed at increasing transparency and gradually lowering the high costs of debt servicing within the budget. Looking forward, the IMF underscored the urgency of deeper reforms to unlock Egypt's growth potential, create quality jobs, and boost economic resilience. Key priorities include reducing the state's footprint in the economy through implementation of the State Ownership Policy and asset divestment initiatives, while also improving the business climate to foster private sector-led growth. Hollar expressed gratitude for the hospitality extended during the mission and indicated that discussions will continue virtually to finalize the remaining policy measures necessary for completing the fifth review under the EFF program.
