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Tuesday, 1 November 2016

GDP growth rate increases, undershoots gov’t target

The report on the state’s last fiscal year is in, and the government is giving conflicting reports: GDP growth in FY 2015-16 climbed to 4.3% y-o-y from 4.2% a year earlier, Prime Minister Sherif Ismail told Reuters. Ismail’s report differed from an initial quote by two Finance Ministry officials who said the growth rate came in lower at 3.8%. Both figures fell short of the government’s initial target of a 5% growth rate and its revised target of 4.4%. Fiscally, Egypt’s budget deficit for FY 2015-16 reached 12.2% of GDP, up from the 11.5% recorded in FY 2014-15, Deputy Finance Minister for Treasury Affairs Mohamed Maait told the newswire. Ismail, on the other hand, said the budget deficit figure came at 12.1% of GDP.

In other news yesterday, Egypt’s M2 money supply shot up 18% year-on-year as of the end of September to EGP 2.18 tn, Reuters notes.

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