Egypt Targets 5% Growth In FY2015/16: Minister

Egypt is targeting a 5% growth in GDP in the fiscal year 2015/16 with investments worth LE417 billion, Planning Minister Ashraf El-Araby was quoted as saying by state news agency MENA on Wednesday.

The Arab country suffered from an economic crisis following a popular uprising in 2011, during which growth slowed to 2%, although it is now expected to recover to 4% by the end of the current fiscal year.

But since President Abdel Fattah El-Sisi took office at the beginning of the current fiscal year, energy and electricity subsidies were cut and new taxes were introduced in an effort to reduce a growing budget deficit.

Public investments will be LE180 billion through government investments, economic entities and public sector companies, while the remaining LE237 billion are expected from private investments, El-Araby told the press.

The state budget will only feature LE55 billion in government investments while the rest will be financed from various sources including grants and external loans, he added.

In March, Egypt hosted an economic development conference through which $36.2 billion worth of investment deals were signed. In addition, Gulf countries pledged $12 billion in aid and investment in Egypt, half of which were received by the central bank in April.

The government is targeting 6% of growth by 2018/19, a budget deficit of 8-9% of GDP and a debt to GDP ratio of 80-85%, the ministry of finance showed in a five year fiscal plan released last October.

By 2018/19, the investment rate should reach 24% and foreign reserves should mount to $28 billion, up from the current $20.5 billion, said El-Araby.

Source: Ahram Online