Egypt to reduce budget deficit by 6.2% in FY2019/20: CBE

Egypt’s government is targeting to cut the budget deficit by 6.2 percent of the country’s total gross domestic product (GDP) within the financial year 2019/2020, according to a recent report by the Central Bank of Egypt (CBE).

The CBE noted in its monetary policy report that through the economic reform programme that government is aiming to reduce the total deficit to 9.8 percent at the end of financial year 2017/2018, down from 10.9 percent from the previous year, as reported by the Middle East News Agency (MENA).

Real economic growth is forecasted to maintain its upwards trend supported by the increasing local demand in the public sector.

The Egyptian minister of finance said that the country’s strategy within the upcoming period is targeting sustainable growth rates between six percent and seven percent, to help reduce inflation.

The budget proposal for next year targets an initial surplus of 0.2 percent, which is a huge achievement, Minister Amr El-Garhy said in a statement on Saturday.

Prime Minister Sherif Ismail said today that he expects economic growth to exceed the expectations of international instructions and surpass 6 percent for the financial year 2018/2019.