IMF says Egypt overall fiscal deficits decline 1.5%

Overall fiscal deficits declined in Egypt by 1.5  percent of GDP, respectively, largely from higher VAT collection and increased export taxes, International Monetary fund said Wednesday.

The fund made these announcement during a press conference to represent  Fiscal Monitor report published as officials gather in Washington for the spring meetings of the IMF and World Bank.

In addition, over all fiscal deficits in 2018 declined in emerging market and middle-income economies for a second year in a row, driven primarily by fiscal adjustment in oil exporters.

The average overall deficit declined from 4⅓ percent of GDP in 2017 to 4percent of GDP in 2018, with diverging fiscal developments across countries.

Headline fiscal balances improved for most oil exporters, supported by a pickup of oil prices in the first half of 2018 and continued adjustments to adapt to lower medium-term oil prices (Angola, Azerbaijan, Gulf countries, Kazakhstan, Russia).

On the other hand Many emerging economies saw rising interest burdens, which exceeded 20 percent of total revenue in 2018 in Egypt, Pakistan, and Sri Lanka, the fund added.

As a result, emerging market economies have become vulnerable to rollover risks if they face large financing needs.