Friday, June 16, 2017

Egyptian economy back in growth mode year over year growth of 4.3%

Reuters:

Egyptian Sphinx


Egypt's gross domestic product grew 4.3 percent in the third quarter of the 2016-17 fiscal year compared with the same period the previous year, said Planning Minister Hala al-Saeed on Thursday, predicting a growth rate of 4 percent by year-end.

The climb is a result of growth in several industries, including communication, tourism and manufacturing, Saeed added at a press conference.

(snip)

Tourism revenues jumped in the third quarter by 128.3 percent to $1.3 billion from $550 million a year earlier as the number of tourist nights surged to 14.2 million in the third quarter from 6.9 million a year earlier, a central bank report showed on Wednesday.

Egypt's budget deficit for the first nine months of the 2016-17 fiscal year dipped to 8.4 percent from 9.4 percent during the same period last year, Saeed said.

This is great news for the country and this is what I expected after the devaluation of the Egyptian pound. The news of a surge in tourism is really great.

Egyptian tourism was really hurt after terrorists shot down an airliner full of Russian tourists a couple of years ago.

Egyptian stocks have not really reacted to the growing good news but if the results keep coming in we could see a break higher out of the trading range shown on the chart.

Chart of Egypt ETF

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