CAIRO: The finance minister said Thursday that he expects the nation s budget deficit to fall to 5.5 percent of gross domestic product (GDP) this year, largely because of a bigger-than-expected sale price for a mobile phone license.
This is a windfall. We expect the budget deficit this year to be 5.5 percent of GDP, Youssef Boutros-Ghali said, speaking at the CATO Institute.
Egypt had a budget deficit of about 7 percent of GDP in 2006.
The finance minister said he expects healthy economic growth this year. We re looking at 7 percent for the remainder of this year, he said.
To help bring the budget in balance, Egypt has several privatization projects under way. I am looking at somewhere [around] LE 15 to LE 20 billion, he said, which represents about 3 percent of GDP.
Following a cabinet reshuffle in 2004, Egypt has undergone privatization reforms that have helped growth in GDP to accelerate to 6.9 percent in 2005/2006 from 4.2 percent in 2003/2004.
Today we have a system that is self-perpetuating in terms of reforms, Boutros-Ghali said, adding that he is confident trade relations will improve with the United States over time.
There is a future that translates into closer interactions, he said.
In addition, Butros-Ghali said he expects inflation in Egypt to moderate by this summer.
