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IMF: Egypt's Budget Deficit to Drop to 6.3 by FY2021/22 End


Wed 20 Oct 2021 | 02:10 PM
Rana Atef

The International Monetary Fund (IMF) expected that Egypt's budget deficient will fall to 6.3% from the total country's Gross Domestic Product (GDP) by the end of FY2021/22, compared to 7.3% of FY2020/21.

The international organization mentioned in its recently released world economic outlook report that the process of budget deficit decline may be slowed down in the upcoming years, as it will be decreased to 4.4% by FY2025/26.

On the other hand, the fund forecast that the country could see a slight improvement in the primary surplus rate as it would be 1.7% from the state's budget at the end of this fiscal year.

Regarding public expenditure rates, IMF predicted a slight increase to record 27.4% of the GDP in FY2021/22, compared to 27.2% of the GDP in the last fiscal year.

In the same context, the organization highlighted that Egypt's total public debt would fall to 89.5%, and this decline would continue to FY2025/26 to reach 74.1%.

The report also revealed that the country's financial needs rate would record 36.9% of the GDP in the light of debt decrease, and revenues increase to  21% in this fiscal year which reflects the good stand of the Egyptian economy.

Regarding interest rate growth, IMF predicted that it could fall to 2.1% from 2021 to 2026 due to the current policies applied by Egypt's Central Bank of keeping the interest rates stable.

It is worthy to mention that the latest IMF world economic outlook for October was released on Tuesday.