Egypt: GDP picks up to multi-year high at start of FY 2015
January 16, 2015
According to official data, GDP increased 6.8% in the July–September period (the first quarter of fiscal year 2015) over the same period of the previous year. This marked an acceleration over the 3.6% increase tallied in the fourth quarter of fiscal year 2014 and marked the strongest expansion in over six years. The strong result suggests that the economy is making significant progress amid reduced political instability.
The acceleration in Q1 of fiscal year 2015 was driven mainly by a rebound in export growth. Exports swung to a 15.0% expansion in Q1 after having contracted in the previous four quarters. On the domestic side, government consumption expanded 8.8%, which followed the 5.1% expansion in Q4. Private consumption growth slowed to 4.9% in Q1 (Q4: 7.0% year-on-year). Investment growth slowed but remained in double-digits at 14.4% (Q4: 19.6% year-on-year).
Author: Carl Kelly, Economist