CAIRO, Oct 16 (MENA) – Egypt's gross domestic product (GDP) hit a growth rate of 2.4 per cent during the last quarter of the FY 2023/24, contributing to a 2.4 per cent annual growth compared to a 3.8 per cent growth rate of during the previous fiscal, Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat said.

The economy was affected by successive external shocks and geopolitical tensions, as well as contractionary policies adopted by the government to restore macroeconomic stability, atop of which was applying the principles of governance on public investments, Mashat added during news conference with Prime Minister Mostafa Madbouli following the cabinet's weekly meeting on Wednesday.

Reviewing economic performance indicators for the last quarter and the last fiscal year 2023/24, Mashat emphasized the government's commitment to continue taking effective measures and policies that support macroeconomic stability by stimulating private sector activity, enhancing the governance of public investments, and increasing the efficiency and effectiveness of resource allocation between economic sectors, in terms of priority.

The Suez Canal activity was the most affected by geopolitical tensions in the region, registering a 30 per cent decline in revenues during the FY 2023/24 compared to previous year's statistics, the minister pointed out.

In addition, the extractive industry declined by 4.7 per cent during the current fiscal year due to sluggish production from crude oil and natural gas fields, the minister noted.

While the gas industry was in decline during the last fiscal year, investments in renewable energies increased thanks to the country's strategy to move towards a more sustainable and resilient energy sector, and work for stimulating more private investments, Mashat said.

Meanwhile, the manufacturing sector grew by 4.7 per cent during the last quarter of the FY 2022/23 for the first time since the first quarter of the same fiscal year, despite contraction throughout the year, thanks to the government's economic reform measures initiated in March.

Some economic sectors showed strong resilience, registering positive growth rates during the current fiscal year, with the ICT growing by 14.4 per cent, tourism (represented by restaurants and hotels) by 9.9 per cent, wholesale and retail trade by 6.1 per cent, construction by 5.7 per cent, social services including health and education by 5.6 per cent, transportation by 5.4 per cent, and agriculture by 3.8 per cent, Mashat noted. (MENA)

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