Egypt targets 4.5pc growth next year
Cairo, January 20, 2014
Egypt is targeting growth of between 4 and 4.5 percent next fiscal year, its planning minister said, as the army-backed government pushes on with plans to stimulate the economy.
"The investment plan for the 2014/2015 financial year is still under study and it aims to achieve a growth rate that ranges between 4-4.5 percent," Ashraf Al-Arabi said in remarks carried by state news agency Mena.
The country of 85 million people, which has been battered by three years of political turmoil, grew a meagre 2.1 percent in the year to end June 30.
Al-Arabi, responding to a text message from Reuters, said growth projection for the current 2013/2014 fiscal year was unchanged at 3 to 3.5 percent. Some government ministers have previously said it was 3.5 percent.
Supported by more than $12 billion in Gulf aid, Egypt introduced a 30 billion Egyptian pound ($4.31 billion) stimulus package in 2013 and plans to launch another package of about the same size later this month.
The country is moving towards democratic rule in accordance with the roadmap announced by its army, which ousted Islamist President Mursi in July following mass protests against his rule. Presidential and parliamentary elections are due to take place this year.
"(The forecast) is building on a relatively more optimistic scenario," Mohamed Abu Basha, an economist at EFG Hermes, said about next year's growth forecast.
"In the next fiscal year, at least in the second half, you will be done with the elections and will have the roadmap behind your back so that may result in a pick up in the economy," he said. -Reuters
More Finance & Capital Market Stories
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs
- In a first, NCB Capital names female CEO
- Du enters $1.17 billion financing deals