The government targets a gross domestic products (GDP) growth rate of 5.8% for FY 2018/19, according to the pre-budget announcement, with authorities targeting inclusive growth affecting all economic segments.
Consequently, the government aims to create jobs to absorb the growing workforce; it is estimated that more than 700,000 join the work force annually.
Many economic experts believe that Egypt needs more growth to limit unemployment.
“Egypt’s targeted growth should be 6-7%, which requires direct investments of 25-30%,” according to Mahmoud Mohieldin, World Bank Group senior vice president for the 2030 Development Agenda and United Nations relations and partnerships.
Meanwhile, Oxford Business Group Africa’s Managing Director Robert Tashima, said that growth needs to be 2-3% higher, but more importantly, improvements are needed in household income, education, employment, and providing means of inclusive growth. He added that even if GDP does not reach the target, one of the ways to improve the livelihood of the average Egyptian can be affordable housing.
The government aims to achieve such targets through increasing investments in human capital to improve living conditions and reduce poverty, implementing structural reforms, adopting an agricultural and industrial strategy to boost exports, and increasing infrastructure spending.