Egypt Independent

Govt report: Growth of GDP, construction sector revitalize economy



The Egyptian economy partially recovered in the second quarter of the fiscal year 2011/2012, from October to December, according to a report published by the Planning and International Cooperation Ministry.

The report said the gross domestic product climbed by 10.6 percent in second quarter of 2011/2012, totaling LE377.3 billion compared to LE341.1 billion in the same quarter in the fiscal year 2010/2011.

Government investments dropped to LE8.82 million in that quarter, down from LE9.87 million in the same quarter of the year before. Private sector investments slipped from LE44.28 million in the second quarter of last year to LE40.04 million in the current year.

The report also said that tourism declined by 6.5 percent in the second quarter of 2011/2011, compared to a drop of 16.1 percent in the previous fiscal year.

The construction sector declined by 0.6 percent in the second quarter of 2011/2012, compared to a 9.1 percent drop in the same quarter in 2010/2011.

The processing industries sector dropped by 2.8 percent, compared to a growth of 5.8 percent in the second quarter of 2010/2011.

Non-petroleum processing industries dropped by 3 percent in the second quarter of 2011/2012, compared to a 6 percent growth in the same period the year before.

The report blamed the drop on labor strikes and protests.

The gross budget deficit rose by LE9 billion in the second quarter of the current fiscal year.

Official international reserves dropped to their lowest level since 2004, ratcheting down from US$36 billion in December 2010 to $16 billion in January 2012.

Translated from Al-Masry Al-Youm