Egypt’s economy to miss government’s growth target

The Giza Pyramids dominate the skyline in Giza, Egypt, Cairo's sister city (Photo: AP)

Egypt’s economy is likely to grow 3.5 percent in the 2016/17 fiscal year, missing the government’s target of around 5 percent and falling below last year’s growth rate, a Reuters poll showed on Thursday.

The poll, which surveyed 17 analysts, found growth would pick up only slightly to reach 3.7 percent the following fiscal year.

Egypt has been struggling to stimulate its economy amid a severe shortage of dollars since a 2011 uprising drove away tourists and foreign investors, key sources of foreign currency.

The economy also fell short of the government’s target of 5.5 percent for the 2015/16 fiscal year, which ended in June. Egypt’s finance minister has estimated growth for that period at around 4.2 percent.

“Real GDP growth was unexpectedly high in 2015/16 considering the sharp downturn in tourism and severe forex shortages,” said Jacques Verreynne, an analyst at NKC African.

Last Update: Wednesday, 20 May 2020 KSA 09:52 - GMT 06:52