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FINANCIAL NEWS
Egypt’s economic growth may accelerate in 2010
06 Jul 2010
(MENAFN) A report issued in Cairo said that Egyptian economic growth may accelerate this fiscal year helped by consumer spending, though it will probably remain below what the government says is needed to keep unemployment from rising, Reuters reported.
The economy of the most populous Arab country expanded at an average rate of 7 percent in the three fiscal years through June 2008, helped by foreign investment and revenue from tourism and the Suez Canal. Growth slowed to 4.7 percent in the year ending June 2009 due to the global financial crisis.
The government says it needs a growth rate of about 7 percent to create enough jobs for the 750,000 people who enter the workforce every year. Unemployment is 9 percent, according to the state statistics agency.
Egypt is targeting about $8 billion in foreign direct investments next year, compared with a forecast of $5.5 billion this year, according to a report published by the Economic Development Ministry.
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