Egypt targets 4.3 pct growth in 2015-16 draft budget

Sunday 14-12-2014 01:19 PM
Egypt targets 4.3 pct growth in 2015-16 draft budget
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CAIRO, Dec 14 (Reuters) - Egypt's finance ministry said on Sunday it aimed to boost economic growth to 4.3 percent and have a budget gap of 9.5 to 10 percent of gross domestic product in the 2015/16 fiscal year, as it pursues a structural reform programme.

The government would reach those targets by extending new taxes and politically-sensitive cuts to energy subsidies introduced earlier this year, the ministry added in a statement.

Nearly four years of turmoil since the uprising that toppled Hosni Mubarak has hit the economy, scaring off investors and tourists. Growth fell from above 7 percent in 2007/08 to below 2 percent in 2010/11 and has not exceeded 2.2 percent annually since.

The government is targeting a budget deficit of around 10.5 percent for the current fiscal year ending June 30 and 3.5 percent economic growth.

A Reuters poll forecasts economic growth of 3.3 percent this fiscal year as Egypt pushes ahead with big projects such as expansion of the Suez Canal. (Reporting By Stephen Kalin)

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