According to a statement from Finance Minister Ahmed Kouchouk, Egypt’s overall budget deficit decreased to 505 billion Egyptian pounds ($10.5 billion) in the fiscal year 2023–2024, which concluded on June 30. The previous year’s deficit was 610 billion pounds. According to the minister, the nation’s preliminary surplus for the 2023–2024 budget was 857 billion Egyptian pounds, up from 164 billion Egyptian pounds the year before.
In March, Egypt depreciated its currency in an effort to combat rising inflation. Before falling towards 50, the pound was fixed at 30.85 to the dollar for a year. It is currently trading at about 47 to the dollar.
In 2023–2024, revenues increased by approximately 59.3%, the minister continued. To reduce the budget deficit, Egypt raised the price of basic subsidies like fuel and bread after the pound fell by nearly 29% in March.
As anticipated, Egypt’s central bank maintained its overnight interest rate on Thursday, citing continued slow economic growth and declining inflation.
The bank’s Monetary Policy Committee (MPC) maintained the lending rate at 7.25% and the deposit rate at 27.25%. According to the MPC, “food inflation is gradually unwinding and inflation expectations are improving, suggesting that inflation is on a sustained downward trajectory.” According to the MPC, the gross domestic product shrank from 2.3% in the last quarter of 2023 to an annualized 2.2% in the first quarter.
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