Official data: Egypt’s 2015/16 budget records deficit increase, growth slump

Egypt’s economy marked an upturn in the Gross Domestic Product (GDP) growth which amounted at 4.3 per cent in 2015-2016, up from 4.2 per cent in the financial year 2014-2015. On the contrary, the budget deficit widened to 12.1 per cent compared to 11.5 per cent last financial year.

Reuters quoted the Egyptian Prime Minister Sherif Ismail on Monday saying that Egypt’s GDP growth of the financial year 2015-2016 reached 4.3 per cent, while the budget deficit stretched to 12.1 per cent.

Egypt has targeted an economic growth of more than 5 per cent in 2015-2016 and a budget deficit of 8.9 per cent, which have not been achieved. Egypt’s financial year begins at 1 July of each year.

Mohamed Moeit, the Deputy Minister for Treasury, said earlier that the ministry adopted the final budget of the financial year 2015-2016, with a budget deficit of 12.2 per cent.

Two other finance ministry officials said that the GDP growth for the current financial year reached 3.8 per cent, lower than the targeted growth of 5 per cent.

Egypt has been experiencing an economic crisis and a shortage in basic commodities such as sugar and rice. In addition, the US dollar exchange rate has recently surpassed 18 Egyptian pounds in the black market (unofficial) compared to less than 9 Egyptian pounds in the official market, amid a rise in commodity prices.

Egypt has been suffering from a severe shortage in foreign currency as a result of a decline in tourism and Suez Canal revenues, as well as Egyptian remittances from abroad.

The US dollar exchange rate amounts to 8.88 Egyptian pounds in banks, marking a difference of about 10 Egyptian pounds in the black market.