CAIRO: Egypt’s economy grew by three percent in the third quarter of fiscal year 2014/15 (ended June 30,) up from 2.5 percent in the same period a year earlier, Planning Ministry said a report posted on its website Friday.
Yet it remains below its record of 6.8 percent in the first quarter of FY 2014/2015, the highest annual growth rate since the fourth quarter in 2007/08, and also weaker than a 4.3 percent growth in the second quarter.
Real GDP growth rate recorded 2.2 percent and 2.1 percent during FY 2013/2014 and FY 2012/2013 respectively, according to central bank data.
“During the third quarter, Suez Canal revenues rose by 1.8 percent to $1.236 billion during Q3, from $1.21 billion in the same period a year earlier,” the report read.
Meanwhile, tourism revenues slipped 6.3 percent to $1.5 billion in the aforementioned period, compared to $1.6 billion in Q3 during the previous FY.
“Since last July until March, Egypt’s economy grew by 4.7 percent, compared to 1.6 percent in the same period a year earlier,” Planning Ministry said in the report.
The ministry attributed the rise to the support stemming from political stability, reform procedures, as well as reinstating investors’ confidence in the national economy.
Egypt’s new budget for FY 2015/2016, ratified by President Abdel Fattah al-Sisi ratified Thursday, July 2, projects economic growth at about five percent, compared to a projected 4.2 percent during FY 2014/2015.
The International Monetary Fund (IMF) in April upgraded its forecast for Egypt’s economic growth in 2015 to 4 percent, from 3.8 percent in its previous assessment.
“Egypt’s macroeconomic stabilization plans and wide-ranging structural reforms are expected to increase confidence,” the IMF said in its April World Economic Outlook (WEO.)
The fund forecasts Egypt’s economy to grow by 4.3 percent in 2016, noting that lower oil prices will reduce Egypt’s vulnerabilities as a main oil importer in the Middle East.