ECONOMY

Egypt has spent $1bn of $4.3bn stimulus package, says minister

Egypt spent $1.02bn from a $4.3bn package set to stimulate the economy that’s hit by more than two years of political turmoil. (File photo: Reuters)

Egypt has spent 7 billion Egyptian pounds ($1.02bn) of a package of $4.3bn intended to stimulate an economy ravaged by more than two years of political turmoil, Planning Minister Ashraf al-Arabi said on Saturday.

Many tourists and investors have stayed away since a popular uprising ousted autocrat Husni Mubarak in 2011. The army’s removal of the elected Islamist president, Mohammad Mursi, last July after months of protests has failed to bring calm back to the streets.

Gulf states, mistrustful of Mursi’s Muslim Brotherhood, have pledged over $12bn in aid to help Egypt overcome its balance of payments crisis and avoid painful austerity measures that could ignite more popular unrest.

The most populous Arab country, whose GDP grew a mere 2.2 percent in the financial year ending June 2013, low for an emerging economy, launched a $3.2bn stimulus package in August, increasing it later to just short of $4.3bn.

Officials hope that, with the stimulus package, growth could reach 3.5 percent by the end of June 2014. They also hope to lower the budget deficit to 10 percent of GDP this fiscal year, ending June 2014, from 14 percent last year, despite increasing government spending by 35 percent to $12.3bn.

The government has paid off 1 billion pounds' worth of arrears to contractors and expects to pay off another $145m before the end of December, Arabi said.

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Last Update: Sunday, 8 December 2013 KSA 10:57 - GMT 07:57
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Egypt has spent $1bn of $4.3bn stimulus package, says minister
Egypt launched a $3.2bn stimulus package in August, and increased it later to around $4.3bn
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