Egypt economy suffers yet another set back

Egypt’s GDP growth rate dropped to one per cent during the first quarter of the fiscal year 2013-2014 compared with 2.5 per cent during the same period of the previous year, while public debt rose to more than 75 per cent of GDP, the Finance Ministry said on Tuesday.

The Middle East News Agency (MENA) published the Ministry’s report which noted that “the decline was expected in light of the political and security developments during this period”. The report said: “The investment rates have continued to decline to nearly 7.3 per cent for the first quarter of the financial year.

“Investments are expected to recover dramatically when the government implements a new package of economic stimulus and complete its road map, which in turn would contribute to political stability and an improved security situation in the country.”

In Egypt the fiscal year begins on the first of July.

According to the report, domestic debt rose to nearly one trillion and 546 billion Egyptian pounds, 75.4 per cent of the gross GDP, by the end of December compared with a trillion and 294 billion Egyptian pounds, 73.8 per cent of GDP, by the end of December 2012. The report attributed this rise to the increase of treasury bills and bonds. The report said the total external debt stood at 45.8 billion dollars at the end of December 2013 or 15.4 per cent of GDP compared with 38.8 billion dollars at the end of December 2012.

SOURCE: Arabi21