Egypt’s budget deficit is expected to narrow to 5.6% of the GDP in the current fiscal year (FY2022/2023), announced Finance Minister Mohamed Maait today, down from the original forecast for the year of 6.1% that was announced in May.

Maait added that the deficit is expected to fall further to 5% of total gross domestic product (GDP) by FY2023/2024.

The total deficit would have reached 4% were it not for the pandemic, said the minister, cited by local press.

Egypt also revised its forecast for the state budget’s initial surplus, expecting a slightly more positive rate of 1.6% of total GDP, up from the 1.5% that was announced prior to the start of IMF negotations.

Due to the exchange rate’s movements during the previous FY, the public debt saw a 4% climb in relation to the GDP to reach 85.3%, according to Maait.

Egypt recorded a 6.6% in GDP growth in FY2021/2022, however Egypt lowered its expectations for the current fiscal year to 5.5%, lower than the 5.7% forecasted prior to the Russia/Ukraine conflict.