Egypt's public investments rose by 7.8 per cent in the fiscal year 2009/2010, totalling LE225 billion ($37.8 billion), against LE208.8 billion a year earlier, the official Middle East News Agency (MENA) said yesterday, citing a government agency. Dividends of public-sector companies grew by 2.2 per cent to LE9.2 billion in FY 2009/2010, compared with LE9 billion the previous year, the State-run Central Agency for Public Mobilisation and Statistics (CAPMAS) said in a report about public investment in Egypt. Liquid liabilities of State-owned firms added 8.4 per cent to LE144.8, against LE133.6 billion a year earlier, while liquid assets fell by 5.5 per cent to LE131.8 billion from LE139.5 billion, the report said. The fall in liquid assets was due to a decline of 42.5 per cent in stocks of the manufacturing sector, according to the report. Net capital of State-owned companies rose by 8.9 per cent to LE39.3 billion in FY 2009/2010, against LE36.1 billion. Meanwhile, the country's balance of payments posted an overall deficit of $5.5 billion over the first nine months of FY 2010/11, against a surplus of $3.1 billion a year earlier, the Central Bank of Egypt (CBE) said on its website. "The deficit in the balance of payments was due to a 7.9 per cent drop in current account deficit, standing at $2.4 billion in the reporting period," the CBE said. The trade deficit slightly fell by 0.7 per cent, to $18.4 billion. Imports increased by 5.1 per cent to $37.3 billion, driven by higher oil imports by 26.8 per cent and non-oil imports by 2.9 per cent, according to the CBE. "Suez Canal receipts rose from $3.4 billion to US$ 3.7 billion, up by 11 per cent, while tourism revenues remained at $8.7 billion," the CBE said. Gouda Abdel-Khalek, the Minister of Social Solidarity, has said Egypt's gross domestic product growth is likely to be 0-1 per cent in the 2010-2011 fiscal year. Egypt said in March its growth could slow to three per cent for the fiscal year to the end of June. Last month, World Bank President Robert Zoellick unveiled $6 billion in fresh funding for Tunisia and Egypt. The World Bank has cut its 2011 forecasts for growth in the Middle East and North Africa to 3.6 per cent – below the five per cent it previously projected for the year. The World Bank package includes support for the countries' budgets and lending that will shore up the private sector and encourage new investment through political insurance coverage.
