GDP has doubled over the last four years to reach one trillion pounds

Dr. Youssef Boutros Ghali, Minister of Finance, after returning from Washington, hold a meeting with Rashid Mohamed Rashid, Minister of Trade and Industry, Dr. Mahmoud Mohieldin, Minister of Investment, to discuss action to face the repercussions of the global financial crisis on economic sectors.

Dr. Ghali declered after the meeting, which lasted several hours that were discussed various actions required to support the most affected sectors, as well as sources of financing such actions ,Referring that he is currently perform mechanisms to assist those sectors and decrease the potential negative effects in order to avoid the repercussions of the crisis on the Egyptian economy and maintain high growth rates for the local economy and employment rates and protect low-income.

One the other hand, the latest report of the Ministry of Finance revealed that public revenues during the current fiscal year will rise to about 275.7 billion pounds compared to 110.8 billion pounds in 2004/2005 as a growth rate of 148% .The report attributed the improvement to the marked increase for each local economic indicators over the last four years as the gross domestic product has jumped from 538.5 billion pounds in 2004/2005 to 617.7 billion pounds in 2005/2006 and 744.8 billion pounds in 2006/2007 and 896.5 billion pounds in 2007/2008 and is expected to exceed the gross domestic product in the current fiscal year to trillion pounds to go up by 87%.

The report which dealt with the performance of the Egyptian economy over the past four years clarifies that most financial indicators of the domestic economy has improved markedly as indicators of economic growth rose from 4.2% in 2004 to 4.6% in 2005 and 6.9% in 2006 and 7.1% in 2007 and expected to record In 2008 the growth rate of 7.2% and the rate of real per capita income of 2.1% in 2004 to 2.5% in 2005 and 4.8% in 2006 and 5.1% in 2007.The report refer  to an increase in the total exports of goods and services in 2004/2005 to 163.4 billion pounds and 193.2 billion pounds in 2005/2006 and 225.3 billion pounds in 2006/2007 and 293.9 billion pounds in 2007/2008 This rise helped to increase the proportion of exports to the GDP from 30.3% in 2004/2005 to 32.8% in 2007/2008.

The report added that the total public revenue and grants rose from 110.8 billion pounds in 2004/2005 to 151.2 billion pounds in 2005/2006 and 180.2 billion pounds in 2006/2007 and 218.5 billion pounds in 2007/2008 and it is expected to record revenues in the current fiscal year 2008/2009 to 275.7 billion pounds and thus public revenue had risen by 148% in 5 years.

The report attributed the rise in public revenue to the increase in tax revenue from 75.7 billion pounds in 2004/2005 to 97.7 billion pounds, 114.3 billion pounds and 137.3 billion pounds in the next three years and expected to reach 166.5 billion pounds this fiscal year growth rate of 102 % In 4 years.

The report pointed that income tax revenue has made a big leap after the application of new taxes on income, rising toll of 31.57 billion pounds in 2004/2005 to 48.26 billion and 58.53 billion pounds, of which 67.07 billion pounds in the next three years and it is also expected to arrive during the current fiscal year to 91.448 billion pounds, up to 189.6% growth in 4 years.

Similarly, sales tax revenue rose from 26.5 billion pounds in 2004/2005 to 31.4 billion pounds and 34.69 billion and 39.43 billion pounds and 49.98 billion pounds in the next three years following a growth rate of 88.6% in 4 years and expected to register during the current fiscal year 49.7 billion pounds, and increase in customs revenues of 7.744 billion pounds in 2004/2005 to 13.957 billion pounds in 2007/2008 and are expected to 15.150 billion pounds this fiscal year as a growth rate of 95.6%.

(Source: Ministry of finance)