Egypt: GDP decelerates in Q2 of FY 2015
March 31, 2015
According to official data, GDP increased 4.3% in the October–December period (the second quarter of fiscal year 2015) over the same period of the previous year. This marked a deceleration from the 6.8% increase tallied in the first quarter of FY 2015 but was still the second strongest expansion in three years. The result suggests that the economic rebound that gained traction after the return of relative political stability may be losing steam.
The deceleration in Q2 was mainly driven by a slowdown in export growth. Exports increased just 3.1% in Q2 after having expanded 15.0% in Q1. On the domestic side, government consumption expanded 5.0%, which followed the 8.8% expansion in Q1. Private consumption growth slowed to 4.5% in Q2 (Q1: 4.9% year-on-year).
Author: Carl Kelly, Economist