Egypt GDP Grows 5.4%

Egypt’s gross domestic product grew by 5.4% in the 2017-2018 fiscal year that ended on June 30, new Prime Minister Mostafa Madbouly said on Tuesday, the fastest growth rate in a decade, Reuters reported. Madbouly, a former housing minister, was appointed prime minister last month after President Abdel Fatah al-Sisi was elected for a second term in March. Parliament will discuss the government program and is widely expected to approve it in the coming days. Egypt has been implementing severe austerity measures as part of a 2016 IMF loan program intended to shore up the country’s finances. The reforms have involved a currency float, cutting subsidies and raising prices of fuel, electricity and public transport. Analysts say the tough reforms, coupled with better security, have helped turn the economy around. In his speech to parliament, Madbouly said his government was looking for growth of up to 8% in fiscal year 2021-22. GDP grew by 4.2% in the fiscal year 2016-2017. Tourism, Suez Canal revenues and remittances from Egyptians working abroad have risen over the past year, has boosted the economy.