Egypt sees deficit at 14-14.5 percent of GDP next fiscal year

Egypt's newly appointed Finance Minister Hany Dimian talks during a news conference in Cairo March 12, 2014. (Reuters)

The Egyptian government sees its budget deficit running at 14-14.5 percent of gross domestic product in the fiscal year starting on July 1, Finance Minister Hany Dimian said on Sunday, above a target of 10-10.5 percent 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 percent from 3-3.5 percent.

“We expect the budget deficit in the new budget to stand at 340-350 billion Egyptian pounds ($48.60 billion-$50.03 billion), which is around 14 to 14.5 pct of GDP,” Dimian said in an interview with CBC, a local TV station.

Egypt’s fiscal year runs from July 1 to June 30.

Dimian, appointed earlier this year, said in March the state’s budget deficit for fiscal year 2013/14 would be around 12 percent and expected it to stand at 10-10.5 percent in the following fiscal year.

Dimian said he hoped economic reforms could bring the budget deficit down to 10 percent of GDP, but gave no time frame.

Last Update: Wednesday, 20 May 2020 KSA 09:42 - GMT 06:42