Egypt's economy grows 4.7% in first 9 months of FY 2014/2015

(MENAFN- Daily News Egypt) Egypt's economic growth rate in the first nine months of fiscal year (FY) 2014/2015 grew by 4.7%, Minister of Planning Ashraf El-Araby said in a Saturday press conference.

This was compared to 1.6% in the same period in FY 2013/2014, with the hike attributed to the gradual improvement in the economic activity in response to the reform procedures adopted by the government.

Economic growth increased by 3% in the third quarter (Q3) of FY 2014/2015, which compares to 2.5% in Q3 in the previous fiscal year (FY 2013/2014). The GDP volume in the first nine months FY 2014/2015 registered EGP 1.9tn, of which EGP 570bn was registered in Q3, El-Araby said.

Several economic sectors registered improvement in performance in that quarter: the building and construction sector topped the list, recording growth of 11.8%, followed by the Suez Canal at 7%.

El-Araby said the tourism sector witnessed improvement between July 2014 and March 2015, achieving 34.6% in growth during that period.

Suez Canal activities witnessed a "slight improvement" in Q3 of FY 2014/2015 as revenues registered $1.214bn, compared to $1.236bn in Q3 2013/2014, according to El-Araby.

The investment volume registered EGP 88bn in the first nine months in FY 2014/2015, with EGP 46bn recorded during Q3. The private sector has dominated 51.5% of total investments of Q3, and 62.7% in the first nine months of the fiscal year.

El-Araby also pointed out that state revenues increased by 10.5% in FY 2014/2015, due to a 40% increase in tax revenues; however, it marked a decrease in the first nine months.

General expenditures have also increased by 26.3% in Q3, compared to the same period in the previous fiscal year, due to a hike in subsidies, grants and social benefits.

International foreign reserves have decreased by 8.4% between June 2014 and March 2015, which led to a decrease in commodity imports.