Egypt’s net Foreign Direct Investment (FDI) slowed by 25 percent ($1 billion) in the fiscal year 2012/13, compared to fiscal year 2011/12, the central bank’s September bulletin revealed.
The fiscal year, which ended in June, saw a net FDI of $3 billion, comprised of some $9.6 billion in inflows and $6.6 billion in outflows. The US, EU and Arab countries were among the main sources of FDI, with investments worth $2.1 billion, $5 billion and $1.4 billion, respectively.
Despite the overall shrink, the net FDI increased by around $600 million in the fourth quarter of fiscal year 2012/13, reaching $1.6 billion compared to $1 billion in the preceding quarter.
The central bank’s September bulletin coincided with recently-announced figures released by the planning ministry, which recorded a total growth rate of 2.1 percent for FY 2012/13.
According to the planning ministry’s report, Egypt’s economy showed a modest growth of 1.5 percent in the period between April and June 2013. The economy grew 3.3 percent in the same quarter of fiscal year 2011/12.
The ministry’s forecast for fiscal year 2013/14 growth ranges between 3 and 3.5 percent, a figure many analysts believe is too ambitious. EFG-Hermes expects a more modest rate of 2.5 to 3 percent, while a recent Reuters’ poll anticipates that it will not exceed 2.6 percent.
Source: Ahram Online