CAIRO: Egypt’s real gross domestic product (GDP) hiked significantly to 6.8 percent in the first quarter of 2014/15 FY, the highest annual growth rate since the fourth quarter in 2007/08, the Central Bank of Egypt (CBE) said in a statement Thursday,
Real GDP growth rate recorded 2.2 percent during 2013/14 FY, 2.1 percent during the previous FY, according to CBE data.
“Notwithstanding the support stemming from the base effect, the expansion in the economic activity during 2014/15 Q1 came on the back of continuous growth in the manufacturing sector and the expansion of tourism activities after several quarters of contraction,” according to the statement.
This remarkable rise in growth rate was a key reason behind the CBE’s Monetary Policy Committee’s decision to cut benchmark interest rates by 50 basis points each during Thursday meeting.
According to the CBE, investment continued to improve for the 3rd consecutive quarter, forecasting that investments in domestic mega projects, such as the Suez Canal, will boost economic growth.