THE IMPACT OF DEVELOPMENTS IN THE PETROLEUM SECTOR ON THE EGYPTIAN ECONOMY A. THE PETROLEUM SECTOR’S CONTRIBUTION TO GDP Although the sector’s contribution to GDP witnessed a negative growth rate between FYs 2014/15 and 2016/17, the rate
Petroleum Sector’s Contribution to GDP over FYs(2014/15-2017/18)
significantly increased by 52.1% and 46.6% in FY 2016/17 and FY 2017/18, respectively, according to the Ministry of Planning
(EGP Billion)
and Economic Development (MPMAR). As a result, crude oil’s growth rate increased by 44.1% between
GDP
Crude Oil GDP
Natural Gas GDP
FYs 2014/15 and 2017/18, while natural gas’ growth rate increased by 55.7% during the same period. Crude oil share in GDP witnessed an increase of 9.3% between
225
FYs 2016/17 and 2017/18, according to the MPMAR. Natural gas recorded a better performance in FY 2017/18 compared to crude oil, as in FY 2017/18 it contributed to the GDP by 5.19%. The natural gas share witnessed an increase of
199
139 143
144 138
87 91
2473
2674
3410
4334
/
/
/
/
27.5% in FY 2017/18 compared to the previous year. It is worth noting that the highest natural gas shares in GDP
FY
were recorded in FY 2014/15, representing 5.84% of GDP. However, during the following year, FY 2015/16, natural gas shares in GDP were at its lowest level; nearly 3.25%, according to the MPMAR.
Petroleum Foreign and Public Investments over FYs (2014/15-2018/19) (EGP Billion)
B. THE PETROLEUM SECTOR’S FOREIGN AND PUBLIC INVESTMENTS Post FY 2016/17, the petroleum investments followed an increasing trend.In FY 2017/18, the petroleum investments significantly jumped by 27% in comparison to FY 2016/17. In FY 2018/19, the petroleum investments rose by 10.5% to
156
reach its peak at EGP 172.4 billion.
172.4
123
57
58
FY /
/
/
/
/
17