Minister Hala El-Said talks government investments and growth rates
Planning and Economic Development Minister, Hala El-said, announced that Egypt has seen a growth rate of 60 percent, with the government’s investments reaching LE40 billion during the first quarter of 2020/2021.
In a cabinet meeting on Wednesday, the minister stated that the government’s investments included EGP 2.84 billion from the public treasury, an increased rate of 29%.
Sectors that benefited from the funding were the housing, pre-university and university education, local development, transportation, health, irrigation, and a number of other sectors.
El-said highlighted the speed of implementation and growth rates of the government’s investments in the university education sector which was noted at 116 percent, pre-university education at 88 percent, and 84 percent in the health sector.
Economic growth rates dropped during the first quarter of the fiscal year 2020-2021, dipping to 0.07 percent due the COVID-19 virus’s effect on integral sectors such as tourism, industry and others compared to the same period last year.
The minister emphasized the measures taken by the state as contributing to the country’s positive growth rate, and how the economy would have seen an expected contraction of around 1.2 percent if not for these measures.
Despite the COVID-19 virus, initial indicators in Q1 of 2020/2021 suggest that growth rates in several sectors such as transportation and storage, agriculture, health, education, and general government saw an uplift.
She also noted that unemployment rates have dropped to 7.3 percent during Q1, after reaching 9.6 percent during Q4 of 2019/2020.
When discussing the annual total spending of families, the results of the income and expenditure research for 2019/2020 stated that the average annual income for families increased to 61.9 thousand pounds, compared to 53.7 percent thousand pounds in 2017/2018, an increase of 15.2 percent.
Segmented, the average household income for urban families saw an increase of 19 percent, while those in the countryside saw an increase of 12.3 percent.
El-said highlighted that when comparing the unemployment rate at an international level, Egypt has the lowest rate among some of the developed and neighboring countries. This is due to the various economic policies implemented that helped preserve facilities and support the workforce in the face of the repercussions of the coronavirus.