Egypt economy grew 1.8 pct in 2011/12: Initial data

Ahram Online, Saturday 14 Jul 2012

Preliminary figures are in line with recent predictions but growth could falter if political upheaval hinders policy-making, say experts

Egypt growth
Egyptian 2011/12 growth in line with recent expectations (Photo: AP)

Egypt's economy grew between 1.8 and 2 per cent in the fiscal year that ended in June 2012, the country's finance minister said late last week.

The preliminary figures for GDP growth cited by Momtaz El-Saeed were in line with predictions for 2011/12 made by experts in Cairo.
Beltone Financial, a local investment bank, previously forecast an acceleration of real GDP growth from 1.8 per cent in financial year 2010/11 to 2 per cent in 2011/12.
In April, the International Monetary Fund's World Economic Outlook report estimated Egyptian GDP growth at around 1.5 per cent for the 2012 calendar year.
A note from Beltone on Thursday predicted 3 per cent growth in the 2012/13 fiscal year, which started 1 July, dependent on newfound political stability spurring domestic demand.
But the bank suggested that growth could falter if continued political upheaval postpones economic policy-making.
"Domestic pressures are also now coupled with external pressures emanating from a weakening global growth, which negatively impacts Egypt’s external sector and pressures its domestic currency even further," the note said.
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