Egypt Economy Expected to Grow, Unemployment Rate Falls

Egypt’s economy is expected to grow 4.2 % in the current fiscal year ending in June, the country's cabinet said on Tuesday, much less than previously forecast. The gross domestic product grew by 3.9 % in October to December in 2022, the second quarter of the fiscal year, while the unemployment rate fell to 7.2 %, the statement said. Economic growth slowed from 4.4 % in July to September, while the unemployment rate slipped from 7.4 % in that quarter. Egypt’s fiscal year begins in July and ends in June. Suez Canal revenues totaled US$2.2 billion in the second quarter, up from US$1.7 billion in the same period a year earlier. In November, the Planning Ministry said Egypt expected its economy to grow almost 5 % in 2022/23. Finance Minister Mohamed Maait said in December that Egypt targets GDP growth of 5.5 % in the 2023/24 fiscal year.

Suez traffic

Navigation traffic in the Suez Canal recorded its highest-ever daily transit rate, with 107 ships crossing from both directions without waiting and a total net tonnage of 6.3. million tons, according to Osama Rabie, chairman of the Suez Canal Authority. The canal recorded the crossing of various types of mega-ships, 25 container ships, and 28 bulk carriers. It also recorded the transit of 33 tankers, six car carriers, and 15 ships of different types, varying from multi-purpose ships to general cargo ships, and others. Rabie emphasized that the huge leap in the daily transit rates in the canal would not have been possible without the new Suez Canal project, which succeeded in increasing the capacity of the canal. The canal reported record revenues of 18.2 billion Egyptian pounds (US$594 million) in December 2022, according to data released by the Central Agency for Public Mobilization and Statistics. It is the shortest shipping route between Europe and Asia. Connecting the Red Sea and the Mediterranean, the canal is involved in about 10 % of global maritime trade, and the majority of oil is transported by sea.