CAIRO- Egypt's gross domestic product (GDP) is likely to grow by at least 6.5 per cent in the fiscal year that began on July 1, signalling the economy is back on track, the economic development minister said on Thursday. The economy grew by 5.9 per cent in the fourth quarter of 2009/10, up from 5.8 per cent in the third quarter and 5.1 per cent in the second quarter, according to government figures. "If we are to see any indication from the growth rate, the second quarter is higher than the first, and the third is higher than the second. Then clearly we are getting back to normal," Osman Mohamed Osman said at a news conference. "The economy will grow by 6.5 pct in 2010/11, if not more," he added. Egyptian growth, hit by declines in tourism, foreign direct investment and Suez Canal revenue in the wake of the global downturn, fell to 4.7 per cent in 2008/09 from a record 7.2 per cent in 2007/08. Other government officials have forecast that the economy in 2010/11 would grow by 5.8 to 6.0 per cent. Osman projected that total private and government investment would rise to 256 billion Egyptian pounds ($45 billion) in 2010/11 from 235.9 billion pounds in 2009/10 and around 200 billlion pounds in each of the previous two years. He said the main economic indicators, including unemployment and inflation, showed the economy had returned to its normal rates of growth before the global downturn. "Growth is close to 6 pct, putting us back to growth rates before the crisis," Osman said. Urban inflation, the most widely used measure, was 10.7 per cent in the year to end-June, according the government statistics agency CAPMAS. ($1=5.703 Egyptian Pound)
