Egypt Economy Grew 1.8 pct in 2011/12

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.