CAIRO, 8 October 2003 — Egypt’s central bank has reported a real GDP growth rate of 3.1 percent for fiscal year 2002-2003, higher than the previous year’s 2.0 percent but lower than the government’s target of 4.5 to 5.0 percent. A report posted on the central bank’s website nevertheless saw in the latest growth rate “signs that the slowdown” caused by the Sept. 11, 2001 attacks in the United States “is coming to an end.”
In the latest fiscal year, which ended June 30, inflation stood at 4.0 percent, from 2.7 percent in 2001-2002, the report said, giving as the main reason the depreciation of the Egyptian pound against the dollar.
The report did not update the figure for the GDP, which stood at 382 billion pounds in 2001-2002, or $85 billion at the exchange rate of the time. Unofficial projections put 2002-2003 GDP at 393 billion pounds. At the exchange rate of six pounds to a dollar prevalent in June, the GDP in 2002-2003 would be equivalent to $65 billion.
It is 23 percent lower than in 2001-2002, reflecting the depreciation of the local currency after it was floated in late January.
The central bank report said however the flotation had a positive impact on exports and the balances of payments and current account, which both recorded their first surpluses since 1996-1997. Current accounts closed last June 30 at a surplus of $1.9 billion, compared to a deficit of $9 million in 2001-2002, and the overall balance of payment showed a surplus of $546 million, compared to a deficit of $447 million in 2001-2002.
