Back to the complete issue
Thursday, 31 October 2019

GDP grows 5.6% in 1Q2019-2020 mainly fueled by five sectors

What’s driving Egypt’s 5.6% GDP growth in 1Q2019-2020? The retail, agriculture, industrial, real estate, and telecoms sectors contributed the most to Egypt’s 5.6% GDP growth registered in 1Q2019-20, Planning Minister Hala El Said told cabinet yesterday. The sectors contributed to about 56% of Egypt’s GDP growth this quarter. She also noted that tourism, construction, manufacturing, and energy were the fastest growing sectors so far in the current fiscal year. She stressed that 5.6% so far in the year is not bad considering that global GDP growth is projected to come in at around 3% in 2019.

Who’s creating jobs? The construction, manufacturing, logistics and transportation sections appear to be the biggest hirers of 4Q2018-2019, with El Said naming them as the biggest contributor to Egypt’s falling in unemployment rate. Unemployment fell to 7.5% during 4Q2018-2019, from 9.9% in the same period last year.

Egypt’s non-oil exports rose 5% in 1Q2019-2020, while imports apparently plunged 13%, according to El Said, who didn’t provide specific figures. This contributed to the non-oil trade balance narrowing by 22%. Egypt’s non-oil trade widened by 13.4% to USD 38 bn in FY2018-2019.

There’ll be 132 mn of us by 2030: El Said cited population growth as one of the biggest hurdles to development, stating that the population will balloon to 132.3 mn Egyptians by 2030, from 100 mn today — and that’s assuming that the current population growth rate doesn’t increase.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.