Egypt’s real GDP slightly improved during the first 9 months of fiscal year (FY) 2012/2013 growing by 2.3%, compared to 1.8% during the same period last year, according to the Ministry of Finance’s August bulletin.
The report stated that the major contributors to this realised growth were public and private consumption, as they comprise 92.5% of GDP.
Real GDP market prices witnessed a gradual recovery during the third quarter of FY 2012/2013 to record 2.2% growth, compared to 2% in the previous quarter yet significantly lower than the 5.2% recorded during the same quarter last year.
The report said the recovery of real GDP market prices is “much below the needed potential growth to create more job opportunities.”
“Growth remains below potential; as the real economy is still suffering the consequences of the political turbulence that Egypt is witnessing nowadays,” the report said.
The report added that “investment spending recorded a negative growth rate of 4.6 percent during the first 9 months of FY 2012/13 compared to a positive growth rate of 3.4 percent during the same period of last year.”
Exports climbed by 2.9 % during the first 9 months of 2012/2013, as opposed to a decline of 1.3% in the same period last year. Meanwhile, imports surged by 1.4% during the same period.
Commenting on the notable increase in expenditures, the report stated that compensation of employees, increase in interest on treasury bonds issued by the Central Bank of Egypt and increases in subsidies grants and social benefits were the main reasons behind the rise.