GDP grows 2.2% in second quarter of 2013

GDP grows 2.2% in second quarter of 2013

Ministry of Finance is set to review the final draft of Egypt’s economic reform programme set to precede the acceptance of the country’s pending $4.8bn International Monetary Fund (IMF) loan. (Daily News Egypt)

The second quarter of 2013 witnessed a 2.2% growth of gross domestic product (GDP), according to a report released by the Ministry of Finance on 28 July.
(DNE File Photo)

The second quarter of 2013 witnessed a 2.2% growth of gross domestic product (GDP), according to a report released by the Ministry of Finance on 28 July.

The second quarter growth was less than the first quarter, which saw an increase of 2.4% of the GDP. The report stated that private and public consumption were the major contributors for this realised growth.

“Between May and July 2013, the budget deficit rose to 11.8% to reach EGP 204.9bn, compared to the EGP 136.5bn during the same period last year,” the report said.

“In addition, it is expected that the budget deficit reaches 9.1% as a percentage of GDP during the fiscal year budget 2014/2013, to become approximately EGP 186bn,”the report stated.

The report noted a “significant increase” in the Consumer Price Index (CPI) annual urban inflation rate; during June it reached 9.8%, compared to 8.2% during the previous month. Moreover, the report stated that the annual core inflation increased between May and June by 0.6%, to register 8.6% in June.

“During the Monetary Policy Committee meeting held on the 20 June, the Central Bank of Egypt decided to keep the overnight deposit rate and overnight lending rates unchanged at 9.75% and 10.75% respectively,” the report added.

The report also stated that the central bank has decided to keep the rate of main operations (repurchase agreements or deposit auctions) unchanged at 10.25%.

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