Decline in inflation over past 4 months reflects improved economy

The decline in inflation rates by around one percent on a monthly basis over the past four months reflects the improvement in the economic situation, Finance Minister Amr el-Garhy said on Tuesday.

He added that it also reflects stability in commodity prices, which was largely impacted by the flotation of the Egyptian pound in late 2016.

Addressing the Canada Egypt Business Council, Garhy said that the government is
working on achieving a seven percent growth rate on the long term, which will help create jobs and therefore achieve social justice.

The government also aims to reduce budget deficit to 8.4 percent of GDP in the new fiscal year and to achieve a primary surplus, paving the way for curbing foreign debt to reach 75 percent of GDP by 2022, Garhy said.

He added that there are pressures on the fiscal policy as state expenditures are bigger than its revenues, a matter that needs careful management and a tightened budget deficit.