Egypt Cuts Economic Growth Forecast as Tourism Reels After Crash

Egypt cut its economic growth forecast for the current fiscal year after the downing of a Russian passenger jet last year battered tourism, Finance Minister Hany Kadry Dimian said Monday.

The revision to a range of 4 percent to 4.25 percent from a previous estimate of 5 percent underlines the challenges Egypt has faced trying to rally an economy that’s struggled since the 2011 uprising that toppled President Hosni Mubarak. Egypt has largely relied on Gulf Arab allies that have pumped in tens of billions of dollars in aid, grants and investments since the ouster of Islamist President Mohammed Mursi in July 2013.

Dimian, speaking to reporters in Abu Dhabi, said the relationship with Gulf Cooperation Council states has shifted from grants to investments. While they still give Egypt credit facilities for oil products, “what we are focusing on now is how to foster direct investments from the Gulf states,” especially since the rate of return on investment in Egypt is still relatively high, he said.