Senate Approves FY21/22 Government’s Economic Plan

Giving More to Your Wealth
30 May 2021

Egypt’s Senate has approved the government’s socio-economic plan for FY21/22. The plan targets increasing economic growth to 5.4% from the current 2.6%. It anticipates EGP1.25tn in investments, of which the government will directly invest EGP385bn, equal to 5% of GDP.

Out of the government’s investments, 58% will be spent on social services, while 19% will go to sanitary drainage services. The remainder will be spent on telecom & I.T., agriculture, electricity, water, construction, and real estate. One third of total investments will be dedicated to achieving sustainable development in Upper Egypt and border governorates, while the remainder will go to building new housing communities, improving slum areas, and environmental projects including reducing carbon dioxide emissions.

Private investments are expected to come in at EGP317bn, and will focus on real estate, manufacturing, energy, telecom, and agriculture. The government expects Foreign Direct Investment (FDI) to reach USD7bn, which is similar to the levels witnessed before the COVID pandemic, while the IMF had previously forecast FDI to amount to USD8.3bn.

Tourism revenues are expected to reach USD6bn and foreign exchange reserves to sit at USD42bn by the end of FY21/22. Inflation should decline to 6%, unemployment to 7.3%, and the poverty rate to 29%. Non-oil merchandise exports are expected to increase by 10% and remittances from abroad to rise by 19%. (Source: al-Ahram (English), Egypt Today (English), Mubasher, Amwal al-Ghad, al-Youm al-Saabe, Akhbar al-Youm, al-Masry al-Youm)

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