The first report on the economic crisis revealed more Egyptian workers returning from abroad, as well as increased rates of unemployment at home, as a result of layoffs due to the global financial crisis. The report, which Minister of Economic Development Dr. Othman Mohamed Othman presented in a press conference yesterday, said 7000 workers have returned from abroad until March, which led to a decline in remittances by 15% during the same period. The report was prepared by Cabinet's Information Center that is headed by Dr. Maged Othman, the Faculty of Economics and Political Science, and the Egyptian Center for Economic Studies. It says the unemployment rate caused by the global crisis reached 9.3% versus 8.6% in the first quarter of 2009, attributing this to a decline in private investment and to a slowing economic growth. It also says that producers are losing confidence in the economic performance, which means more fears of a worsening crisis. Also, food prices are still high, compared to their level before the crisis, despite the low inflation rate. The report confirmed a continuing decline in tourism, while the Suez Canal revenues saw a slight improvement, but still did not reach their level before the crisis.
It also showed a decline in domestic consumption that is manifested in low automotive sales and a 3.5% decline in the private consumption growth; the main factor for economic growth. The report also showed a decline in the number of new companies to 594 in March, compared to 676 during the same period last year. Othman said the report is objective and relies on independent institutions and government organizations. Dr. Hana Khair Eddin, the executive director of the Egyptian Center for Studies, said the big companies expect an improvement in economic growth in June especially in manufacturing, construction and transport.
