Egypt: GDP growth picks up in October-December period
April 15, 2016
According to preliminary data, GDP increased an annual 4.0% in the October-December period (which is Q4 of calendar year 2015 and Q2 of Egypt’s 2016 fiscal year). Q4’s result marked an uptick compared to the 3.0% increase tallied in Q3. Q4’s improvement was mainly driven by the fact that exports performed better than in Q3, when they recorded a drastic contraction. Meanwhile, all components of domestic demand grew at a softer pace in Q4 than in Q3.
On the domestic side, private consumption expanded 2.1% in Q4, which followed the 4.2% expansion in Q3. Government consumption growth decelerated to 3.0% in Q4 (Q3: +5.7% year-on-year). Gross investment slowed from an 8.7% rise in Q3 to a 4.4% expansion in Q4. On the external side, exports rebounded from Q3’s massive 25.6% contraction to a modest 2.4% increase in Q4. At the same time, the contraction in imports softened from 6.8% in Q3 to 3.7% in Q4.