CAIRO, June 17: Egypt forecasts a sharp slowdown in economic growth in the wake of September 11, highlighting the need for reforms, especially in foreign exchange policy, a senior government economic official said on Monday.

“The economy is not really performing in terms of growth, as was projected for it three or four years ago,” said Mahmoud Mohieldin, chairman of the Economic Committee of the government. He said Egypt was falling far short of an annual growth target of seven per cent set in 1997.

“The GDP growth (estimate) for the fiscal year 2000-01 (July/June) is 3.5 per cent,...for the year 2001-02 around 3.0 per cent, and the projection for... 2002-03 is 4.7 per cent,” said Mohieldin, also senior adviser to the minister of foreign trade.

The recent slowdown compared to revised gross domestic product figures of 5.1 per cent for 1999-00, 6.3 per cent for 1998-99 and 4.5 per cent for 1997-98, he added.

Mohieldin said Egypt, which relies heavily on tourism, was severely hit by September 11. He said the first priority should be further reform in the foreign exchange system, but declined to outline specific steps the central bank should take.—Reuters