Egypt’s Economy Recovering Slowly

Minister of Planning and International Cooperation Ashraf el Arabi said that Egypt will invite the International Monetary Fund (IMF) within days to resume talks on the IMF loan, whose value is estimated at USD 4.8 billion. He added that the Suez Canal revenues have retreated in the first half of the current FY 2012-2013 (from July – December). Meanwhile, el-Arabi said that Egypt's battered economy is recovering at a slow pace because of the political turmoil and security instability plaguing the country.

Speaking at a news conference yesterday, he said that the budget deficit may reach EGP 180 billion in the fiscal year (FY) 2012-2013, rating some 10 percent of the Gross Domestic Product (GDP). He added that the budget deficit reached EGP 40 billion in the second quarter of the FY ending 31st of December, while the total deficit reached EGP 91.5 billion in the first half of the year. The national growth rates in the first half of fiscal year 2012/13 reached 2.4 percent. The target in the second half is three percent, he said.