Egypt budget deficit to hit 8.8% of GDP in FY 2017/18: World Bank

2017-10-12 12:21:14

(MENAFN- Daily News Egypt) A recent report issued by the world bank has expected Egypt's budget deficit to stand at 8.8 percent of GDP by the end of the current fiscal year

The improvement in the budget deficit was attributed by the bank to the reforms made in the energy subsidies system and the hike in tax revenues.

In the current fiscal year, current transaction accounts are expected to register 4.6 percent of the GDP, the World Bank said.

It added that poverty is forecasted to decline because of the measures taken by the Egyptian government in the social safety net, which include increasing allocations of food subsidies' smart cards and the cash transfer system.

'Egypt's GDP growth is predicted to stand at 4.5 percent in 2017/18, and to grow gradually to reach 5.3 percent by 2019,' the World Bank noted.

As for inflation rates, the bank said it will fall to 23.3 percent in 2017 and 22.1 percent in 2018, settling at 14 percent in 2019.

If the current inflation rate continues, Egypt might need to tighten its fiscal policy, 'which will affect economic growth,' the World Bank said.

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