CAIRO: Egypt’s growth rate will see an increase of 3.8 percent in the 2015/2016 fiscal year, according to the World Bank’s January 2016 Global Economic Prospects
The bank also inspected that growth rate of the Middle East and North Africa will see an increase of 5.1 percent in FY 2016, comparing to 2.5 percent in FY 2015; the WB attributed this expected rise to the recent lifting economic sanctions on Iran, but it warned that the region is endangered by the escalation of the conflicts, Egypt’s state owned news agency reported.
The Egyptian government has announced that it planned to reach 5 percent increase of the growth rate in FY 2015/2016; however, Minister of Planning ashraf al-Araby told Youm7 it is difficult to reached the planned target due to the crisis facing tourism after Russian plane crash in Central Sinai Oct. 31, 2015.
Al-Araby added that the growth rate rose up by 4.2 percent in FY 2014/2014 due to the tourism sector revenues that represented 19.5 percent of GDP.
Tourism sector suffer turmoil following the crash of Russian passenger plane after it took off from Sharm el Sheikh Airport, claiming lives of 227 passengers on board; Russia suspended its flights to all Egyptian airports and has imposed a ban of EgyptAir fights. Other countries, including UK, halted their flights to Sharm el sheikh Airport for security measures; Russian intelligence has announced that the crash was made by a bomb.