Egyptquotes GDP grows 5.9% in Q2 10
Egypt - Economic - 07-29-2010

Egyptquotes GDP accelerated to an annualised 5.9% in the three months to end June 2010, indicating the country had rebounded from the global crisis, a cabinet statement said on 28 July 2010. Growth for the entire financial year to end-June 2010 rose to 5.3% from 4.7% in 2008 to 2009, the statement said. quoteThis indicates a near full recovery from the global crisis and a return to the path of rapid economic growth similar to the period before the global crisis,quote the statement quoted Economic Development Minister Osman Mohamed Osman as saying. Economists said the fourth quarter growth figure was better than they had expected. quoteIt was a good performance,quote said Simon Williams, an economist for HSBC. quoteIt means growth has accelerated almost every quarter since end-2008.

Egyptian growth rose to a record 7.2% in 2007/08 before the global downturn curbed tourism, foreign direct investment and Suez Canal revenues in the Arab worldquotes most populous country. The construction sector grew by an annual 13.2% in the fourth quarter and the information technology sector by 12%, the cabinet said. quoteWe know that tourism did well in the quarter,quote said Simon Kitchen, an economist with EFG-Hermes. quoteWe assume that investment did as well. That has been reflected in the recovery of credit growth that wequoteve seen in the quarter.quote Tourism is a vital source of foreign currency in Egypt, along with Suez Canal revenue, oil and gas exports and remittances from Egyptians living abroad. Government officials have forecast that in the fiscal year that began on 1 July 2010 the economy could grow by 5.8% to 6.0%.

Source: Reuters