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Tourism crisis may push Egypt to adjust growth forecast

Strong growth of other sectors expected to offset drop in visitor numbers

Egypt may adjust the national economy’s growth forecast for the 2015/2016 fiscal year due to the tourism sector crisis, a minister says.

The Egyptian government might revisit the growth forecast as a result of decline in tourist activity this year, says Ashraf El-Araby, minister of planning, adding that the government will wait for the results of the first half of current year.

The minister said the government had sought to achieve a growth of five per cent this year, but the economic indicators in the first half might be below this figure.

In remarks published by Youm7, El-Araby said that other sectors of the national economy, such as energy, transport, real estate and logistics, are expected to post strong growth and this will help in offsetting the decline of tourism, following the Russian jetliner crash in the Sinai Peninsula.

The minister said the government had raised its forecast for economic growth in the past fiscal year from 3.8 per cent to 4.2 per cent after the opening of the new Suez Canal project.