Economic growth rate jumped to reach 2.6 per cent in the Q1 of FY 2012-2013, compared to 0.3 per cent in the same quarter of FY 2011-2012, declared the Minister of Planning and International Cooperation Ashraf El-Araby.
The poor rate of total investments, which reached EGP 50 billion, slowed down economic growth. The volume of investments dropped from 12.5 per cent in Q1 of FY 2011-2012 to 11.1 per cent in the same quarter of FY 2012-2013, a 1.6 per cent drop.
The EGP 50 billion includes EGP 34.8 billion for the private sector, EGP 6.3 billion for the governmental sector, EGP 3.6 billion for the economic organisations and EGP 4.3 for the public sector.
El-Araby emphasised that capital of new companies during the period between July and September 2012 had dropped by EGP 49 billion, while capital of existing companies rose by EGP 21.66 billion.
“The first quarter was during the beginning of new cabinet’s tenure, and there were hopes, besides, market transactions were good. However the final rate of growth will be settled after three quarters,” economics professor of Cairo University, Aliaa El-Mahdy, told Daily News Egypt.
El-Mahdy added that 2.6 per cent is a small figure. “Investments play a vital role in stimulating the economy and, currently, Egypt has no investments, which negatively reflects on economic growth rate.”