Finance min. reviews Egypt’s financial performance in H1 of 2019/20

CAIRO - 20 January 2020:Egypt’ growth domestic product (GDP) will rise by the end of the fiscal year to 5.8-5.9 percent, from a previously targeted rate of 5.6 percent, Minister of Finance Mohamed Ma’it said Monday.

Mai’t added in a press conference that Egypt achieved a primary surplus of LE 30 billion (0.5 percent) during the first half of 2019/2020

During the press conference to announce the financial performance for the first half of the fiscal year, the minister said it is expected that the total targeted primary surplus in the public budget, which amounts to LE 124 billion, will reach 2 percent.

The minister added that the overall budget deficit worsened to 3.8 percent in the first half of the fiscal year, compared to 3.6 percent in the same period of the prior fiscal year.

He attributed the increase in the deficit to an early payment of LE 16 billion in debts that were due in April, in addition to paying LE 33 billion in insurance dues.

He also indicated that Egypt aims to reduce the ratio of public debt to GDP to 83 percent by the end of the current fiscal year, compared to a target of 89 percent.

Additionally, Ma’it said in a separate press statement that the tax revenues amounted to LE 304 billion in the first half of the current fiscal year.

On the other hand, he aid that foreign investments in government debt instruments amounted to $22 billion at the end of December.

Earlier, Finance Minister pointed out that the ministry was able to achieve an initial surplus of 2 percent of GDP in 2018/2019 compared to an initial deficit of 3.5 percent of GDP in 2015/2016.

The achieved surplus is the second highest initial surplus achieved in emerging countries.

He added that Egypt was able to reduce the public debt from 108 percent of the GDP in June 2017 to about 90 percent of the GDP in June 2019.