Egypt Economy Grew 5.8% in First Quarter, Osman Says (Update2) - BusinessWeek

Egypt Economy Grew 5.8% in First Quarter, Osman Says (Update2) - BusinessWeek


May 10 (Bloomberg) -- Egypt’s economic growth accelerated to 5.8 percent in the first three months of 2010, the fastest pace in almost two years, Economic Development Minister Osman Mohamed Osman said.

Manufacturing, tourism and revenue from the Suez Canal spearheaded growth in the quarter, Osman said in a telephone interview today after a cabinet meeting in Cairo, calling the figures “very satisfactory.” Growth was 5 percent in the previous three months.

The economy of the most populous Arab country is likely to expand as much as 5.3 percent in the fiscal year ending in June, Osman said. Growth was 4.7 percent last year as the global financial crisis reduced investment and revenue from tourism and the Suez Canal.

“The figures reflect the general rebound in the economy,” Reham El-Desoki, senior economist at Beltone Financial, a Cairo-based investment bank, said in an e-mail.

Manufacturing expanded about 6 percent in the quarter, Osman said. Construction grew 14.7 percent, while transport, storage and Suez Canal revenues grew 10.5 percent and communications and information technology 11.3 percent, according to a faxed statement from the Cabinet.