A German report on performance of the Egyptian economy performance expected that this year would witness the beginning of a new stage of economic growth in which growth rate of gross domestic product will hit 5.2%. The report said that investment climate in Egypt is improving, adding that Egypt tops the list of states attracting German investments.

The report mentioned that confidence of German investors in the Egyptian economy has been deepened since the formation of Dr. Ahmed Nazif government. The report noted that direct foreign investments in Egypt rose by 225% last year to hit 1.3 billion dollars from 400 million dollars in the FY 2003/2004.

The report expected that economic reform would extend to cover the banking sector, services, reconstruction, tourism, insurance services saying that German companies would benefit from the development of services sector.

The German report expected that Egyptian exports would increase by 25% by the end of 2006, adding that imports would increase by 15% to record 34 billion dollars in the FY 2006/2007. The report referred to big increase of industrial growth, saying industry modernization centre played a big role in developing industry.

The report urged German companies to invest in the sector of petrochemicals in Egypt. It called on German companies to invest in the fields of reconstruction, building, the sector of airports, power stations and fertilizers. The report hailed security stability in Egypt saying in spite of some terrorist incidents, yet it managed to absorb shocks which could have affected this vital sector.

11/3/2006