CAIRO: Egypt’s economy is targeting 4.3 percent growth rate during the coming fiscal year 2015/16, Ministry of Finance revealed in its initial estimation for the NEW budget.
Since the January 25 Revolution in 2011, Egypt’s economy witnessed a slowdown due to local upheaval which hurt tourism and foreign direct investments dramatically. Over the past 4 years, the economy grew by approximately 2 percent.
Meanwhile, the International Monetary Fund (IMF) predicted in its semi-annual World Economic Outlook report that Egypt’s GDP may grow by 2.2 percent and 3.5 percent in 2014 and 2015, respectively, compared to 2.1 percent in 2013.
“The government took several steps last year to reinstate confidence in Egypt’s economy through achieving security and political stability along with applying fiscal and restructuring reforms to boost private sector confidence,” the ministry said in the statement.
Also, the government has launched a number of mega projects to provide new opportunities for the private sector and create more jobs, added the ministry.
After concluding a visit to Cairo for the 2014 Article IV consultation discussions in November, head of the IMF’s mission Chris Jarvis said “Egypt’s economy has begun to recover after four years of slow activity.”
Jarvis further stated that “Egypt faces many challenges. During the prolonged political transition, growth fell and unemployment and poverty increased to high levels. Budget deficits grew and external pressures led to a fall in foreign exchange reserves.”
According to the IFM official, the authorities recognized these challenges and have set appropriate economic objectives, including raising growth and steadily reducing inflation.