Back to the complete issue
Thursday, 31 January 2019

Egypt’s GDP growth in 2Q2018-19 reaches 5.5%

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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.