Egypt’s 2019/20 budget targets 6.5% GDP growth, 10.9% inflation

Last updated: November 23, 2018 12:27 am

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TO GO WITH AFP WORLD INFLATION SERIES: An Egyptian woman looks at goods at a supermarket in Cairo on March 12, 2008. The Egyptian government has been struggling to tackle a growing tide of discontent over the sky-rocketing prices of goods. Last week, the authorities announced plans to suspend rice exports for six months from April and the commerce ministry said cement exports will also be frozen over the same period in a bid to combat price rises. Official figures show staple food prices spiralling in Egypt, the world's largest consumer of bread, by 26.5 percent in a year. AFP PHOTO/ KHALED DESOUKI

The Egyptian government targets a GDP growth of 6.5% in the coming fiscal year (FY) 2019/20 up from 5.3% in FY 2018/19, according to a press statement on Thursday.

The statement said that Egypt’s GDP stands at EGP 6.214tn, and the government targets an initial surplus of 2% before deducting the public debt value, which will decrease budget deficit to 7%, and inflation to 10.9% on annual basis.

Minister of Finance, Mohamed Moeit, said the 2019/20 budget will take into account the goals of the IMF-backed economic reform programme, and sustainable development plan, adopted by the government from 2018 until 2022. The plan aims to increase the country’s growth rate gradually until it reaches 8% in FY 2021/22.

Moeit noted that this requires increasing investment to about 25%, and reducing unemployment gradually to 8%, through providing about 900,000 jobs per year.

The development plan also aims to decrease poverty to 25%, and to reach a budget deficit of 5%, a trade deficit of 7.7%, and a public debt of less than 80% of the GDP.