Recently published statistics, reported in Al-Iktissad Wal-Aamal magazine have shown that the economic growth rate in Egypt dropped to nearly 4.5 percent in 1999, down from 5.3 percent in 1998. This rate is expected to stay the same in 2000.
However, certain analysts anticipate the local economy to achieve a growth rate of at least five percent by the end of 2000, as a result of rising oil and tourism revenues, which will help the government increase spending.
According to this report, the value of Egyptian debts fell recently to $27 billion, down from $28.7 billion in late 1998.
Egypt began borrowing in the early 1960s, following the depletion of reserves. According to the Central Bank of Egypt, short-term external debts represent only six percent of the country’s total debts, which, in turn, represent 30 percent of Egypt’s GDP. The local government has been monitoring its borrowings carefully, and thus, its debts are expected to fall to $25.9 billion by 2003. –(Albawaba-MEBG)