Egypt’s GDP growth is still accelerating: Economic growth accelerated to 5.5% in 2Q2018-19, up from 5.3% in 1Q2018-19 and 5.3% in 2Q2017-18, Planning Minister Hala El Said told cabinet yesterday, according to a government statement. GDP growth in the first half of the 2018-19 fiscal year reached 5.4%, she added. The government sees the economy growing at a 5.6% pace in 2H2018-19 with an overall GDP growth rate of 5.8% anticipated for the full fiscal year, up from 5.3% in FY2017-18, she said, according to the statement.

Growth is being driven by energy, mining and construction: Energy and mining (labeled together as “extraction”) contributed 25% of total growth in 2Q2018-19, followed by construction (11%), wholesale and retail (11%), telecoms (8%), and hotels and restaurants (7%).

Inflation in 1H2018-19 averaged 14.4%, down from an average of 30.2% during the same period last year, El Said stated.

Egypt’s budget deficit shrank to 2.3% in 1Q2018-19, down from 2.7% in 1Q2017-18, she noted. Earlier this month, Ittihadiya revealed that Egypt’s budget deficit shrank to 3.6% of GDP in 1H2018-19, down from 4.2% the previous year. Finance Minister Mohamed Maait noted at the meeting that the drop in the budget deficit for the period came on the back of a 28% y-o-y growth in state revenues in the first half of the fiscal year, and a 22.2% y-o-y growth in tax revenues. He also said Egypt achieved a primary surplus of EGP 21 bn in 1H2018-19.