The glass half empty? Egypt's deficit for next year projected at 14%
The Egyptian government sees its budget deficit, if it does not implement reforms, running at 14-14.5% of gross domestic product in the fiscal year starting on July 1, Finance Minister Hany Kadry Dimian said on Sunday, above a target of 10-10.5% he gave in March.
Egypt’s economy has suffered from more than three years of political turmoil that has driven away tourists and investment. Last month, Dimian cut the economic growth target for the fiscal year to the end of June to 2-2.5% from 3-3.5%.
“The budget deficit, if we do not implement reforms, will be around EGP 340-350bn ($48.60bn-$50.03bn), which is around 14 to 14.5% of GDP,” Dimian said in an interview with CBC, a local TV station.
Egypt’s fiscal year runs from 1 July to 30 June.
Dimian, appointed earlier this year, said in March the state’s budget deficit for fiscal year 2013/14 would be around 12% and expected it to stand at 10-10.5% in the following fiscal year.
Dimian said he hoped economic reforms could bring the budget deficit down to 10% of GDP, but gave no time frame.
- Understanding the ripple effect: 8 reasons the US economy has slowed down in Q1 of 2015
- Can Bahrian emerge from the oil price plunge 'stronger than ever'?
- Egyptian stocks plummet as Yemen confict deepens
- UAE sweetens flotation regulations to attract more investment
- Replacing Switzerland? Why Lebanon isn't keeping its banking secrecy a secret
- Time to address the energy crisis: Egypt to invest $14.5bn in petrochemicals, refining
- The post-'highest spending in history' year: Saudi Arabia projects much 'bigger than expected' deficit for 2015
- Modest, but at least positive: Egypt's growth rate reaches 1.4%
- In the right direction: Egypt's economic growth expected to go 'easily north of 4 percent'