Economy performance positive as oil exports reach $ 1.148 billion in 3 months, foreign currency reserve hits $14.4 billion

The economic sectors showed a positive development in the third quarter of fiscal year 2003/2004 while the inflation rate showed a marked decline, according to the Central Bank of Egypt (CBE)'s monthly report.

Exports increased to $2.890 billion from $2.286 billion in the second quarter with oil exports bouncing to $1.148 billion from $874 million in 02.

However, said the report, imports increased from $4.121 billion in the second quarter to $4.831 billion in the third, with intermediate goods constituting the biggest bulk of these imports ($1.432 billion), while investment goods cost $1.057 billion.

The foreign currency reserve increased by the end of May to $14.419 billion against $14.305 billion in April according to the report. The monthly inflation rate declined in May to 0.1 percent against 0.5 in April.

Domestic liquidity amounted to L.E. 432.4 billion at the end of May 2004, with an increase of L.E. 48 billion or 12.5 percent. This was the result of a pickup in quasi-money by L.E. 37 billion or 12.3 percent and in money supply by L.E. 9 billion at 13.4 percent.

This pickup in quasi-money was attributed to an increase in time and saving deposits in local currency by L.E. 20.8 billion and in foreign currencies by L.E. 18.2 billion. Local currency deposits totaled L.E. 254.2 billion or 67.4 percent of total non-government deposits.

The total external debt increased by the end of March to $29.4 billion from $28.7 billion in the third quarter of the previous year, said the report. The government domestic debt amounted to L.E. 284.2 billion by the end of March, increasing by L.E. 32 billion, said the CBE's monthly report.

The report put the total GDP growth at 3.8 percent.