Economic update: Egypt

Report 4/2010
The Egyptian government has adjusted its economic growth to a pleasing 5.1% (on an annualized basis) for Q4 2009. The exceptional 13% increase in the tourism industry was a particular factor in this unexpected and positive development. As the Egyptian government remains focused on counteracting the effects of the economic crisis, a third stimulus package worth EGP 11.2 billion has been approved for the current 2010 half-year, primarily for infrastructure, water and housing construction projects. This is a valuable contribution toward reaching the country's high growth target that, according to the Egyptian government, ranges between 5% and 5.5% for 2010. The World Bank shares this estimate, forecasting 5.2% growth for 2010 and a stable 6% for 2011. This puts Egypt's economy ahead of other Arab nations (2010 - 3.7%; 2011: 4.4%), underscoring its leadership status in the MENA region.