Egypt’s budget deficit is expected to ease to 8.8 percent in the 2017/2018 fiscal year following a series of economic reforms introduced by the government, the World Bank said in a report published on Wednesday.
The bank said the country’s economy, fueled by “resilient private consumption,” is projected to grow by 4.5 percent in the coming fiscal year.
The financial institution said however that high inflation remains a challenge in the near term.
Annual urban consumer price inflation stood at 31.6 percent in September. Core inflation, which does not include items succeptible to volatile price changes (such as food), was recorded at 33.26 percent.
The total current account deficit is expected to narrow to 4.6 percent of GDP in FY 2017/18, the report also stated.