Minister announces 'end of financial crisis in Egypt'

[Hurghada Lady]

By Amira Saleh and Ashraf Fekry

Minister of Economical Development, Othman Mohamed Othman, announced in a press conference yesterday the end of the financial crisis's influence over the Egyptian economy, but other government officials remain skeptic.

"Egyptian economy's losses resulting from the crisis have reached 11 billion dollars. This is because of the 435 million dollar decrease in the revenues of the Suez Canal, losses incurred in the tourism sector with 939 million dollar and the transactions of those working abroad that have decreased by about one billion dollars," Othman said.

Meanwhile, a high rank government official ascertained that the Egyptian economy is not fully recovered from the negative consequences of the financial crisis warning from talking too much about this recovery, "The US didn't announce the end of the crisis. And while all the indicators confirm the Egyptian economy to be one of the global economies least affected by the crisis, this doesn't mean the recovery of our economy," he said. He predicted the effects of the crises to continue until the beginning of 2010.

Othman admitted that though the negative results of the crisis conform with government expectations, unemployment will remain a central problem resulting from the crisis especially in light of the decrease in growth rate by 4.7 per cent last year 2008/2009. "Both the investments and growth rates should be increased during the coming period so jobs will eventually be created," he confirmed.

"In the meantime the government is studying my suggestion of increasing expenditures by 10 to 15 billion dollars - not to face the crisis - but to increase the speed of the growth rate," the minister said.

Othman expected the increase of growth rate this year to range from 5.3 per cent to 5.5 per cent depending on the improved function of most sectors as the crises ends.