FOR IMMEDIATE RELEASE

10 February 2014

Egypt Announces 34 Billion EGP Stimulus Package

Power up for an economy on the mend

Today, Egypt’s Finance Ministry announced the details of a second stimulus package since the interim government took over the leadership of the country after the June 30th revolution. A sum of 33.9 billion Egyptian pounds ($4.87 billion) will be injected into the economy—a package similar in size to the first stimulus in August. Two thirds will be directed at much needed construction and development projects that will create jobs. A third will go toward essential social programs, including an increase in the minimum wage.

“This a welcome boost for an economy that, according to a number of impartial indicators, is already showing the green shoots of recovery since it bottomed out last summer,” said Ehab Badawy, Spokesman for the Presidency.

“It is no coincidence that the economy began to reverse its decline at that time and has since made steady progress,” Badawy added. “Egypt has faithfully adhered to the timetable of its roadmap and the financial markets have measured their response accordingly.  We will continue to develop the legal, political and security frameworks necessary for a free, fair, dynamic and innovative economy to flourish.”

Egypt has recently crossed several economic milestones, despite a challenging security environment, as promises laid out in the democratic roadmap are fulfilled. The Egyptian stock market reached a three-year high as Egyptians went to the polls to vote on their new constitution and is now up sixty per cent on the low of last June. Last month Fitch upgraded Egypt’s long-term economic outlook to stable following Standard & Poor upward revision of the country’s sovereign credit rating to B-/B in late 2013. In addition The World Bank’s biannual Global Economic Prospects Report released last month predicted Egypt’s GDP growth rate to increase from an estimated 2% in 2013 to 2.2% in 2014 and 3.3% in 2016- the highest rate of growth since 2010.

In another encouraging sign independent analysts at the Oxford Business Group are predicting the beginning of a rebound to Egypt’s critical tourism sector. In the latest report issued at the end of January OBG noted that the number of tourists to Egypt trebled from September to November, a figure that is still down from three years ago, but moving in the right direction.