Egypt Targets 6.1% GDP, 7.2% Budget Deficit

Wednesday, 20 March, 2019 - 11:15
Cairo- Asharq Al-Awsat

Egypt is targeting a budget deficit of 7.2 percent and GDP growth of 6.1 percent in the 2019-2020 financial year, Finance Minister Mohamed Maait said on Tuesday. It seeks to cut the deficit to 8.4% of the GDP in 2018-2019 from 9.8% in the previous FY.

Egypt’s financial year runs from July to June.

Maait said, during a conference on public finance policy held in Cairo on Tuesday, that the country doesn’t need additional credit for the budget of the current year 2018-2019. He assured that the current economic condition was better than before, referring to international institutions, investors, and international financial indicators.

Egypt sought to raise more than EGP100 billion in the budget of 2016-2017. Egypt’s GDP grew by 5.4 percent in real terms in the first half of 2018-2019, up from 5.2 percent a year earlier. Egypt is pushing ahead with tough economic reforms as part of a USD12 billion, three-year IMF loan deal signed in November 2016.

In a related matter, Minister of Public Business Enterprise Hisham Tawfik announced, at the opening of the Portfolio Egypt 2019 in Cairo on Tuesday, that Nasr auto-assembling factory signed a memorandum of understanding with Japan's Nissan Motor Company to manufacture around 100,000 cars annually.

According to Tawfik, the ministry owns 119 companies belonging to eight holding companies along with ownership rights in a number of 299 joint ventures.

Tawfik revealed that the ministry surveyed over 250 untapped land plots, with a total area of about 19 million meters, most of which were assigned for industrial use, and would be turned into residential areas.

Furthermore, he added that these proceeds will be used to pay the debts owed by the subsidiaries to government agencies amounting to about EGP38 billion, as well as to finance development and restructuring, and some will be diverted to support the state treasury.

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