Egypt's economy grows by 2.2%

Egyptian Investment Minister Yehya Hamed said Tuesday that his country's economy grew by 2.2 percent during the fiscal year 2012-13, citing it as a proof of Egyptian economy's capabilities to stand despite its intense political conditions. Hamed said the government targets to boost economic growth rate to 3.5 to 4 percent in the coming fiscal year, official news agency MENA reported. Egypt's current state budget deficit hits 220 billion Egyptian pounds (31.4 billion U.S. dollars), or 11 percent of the GDP, due to the "huge subsidy expenses," especially the petroleum commodities subsidy which reached 150 billion Egyptian pounds (21. 4 billion dollars), the report said. The minister said the direct foreign investments volume in Egypt during the current fiscal year ranges 350 million to 400 million Egyptian pounds (50 million to 57 million dollars), adding that the government is pursuing a plan to increase the investments to 700 million Egyptian pounds (100 million dollars) in the coming fiscal year which will start on July 1 and end on June 30, 2014.