Gradual decline in foreign exchange reflects economic prosperity

CAIRO – 19 August 2017: The positive trend of foreign exchange going down against the Egyptian pound reflects the flourishing of Egypt’s economic conditions, especially because of the recent reform measures, said Minister of Finance Amr El-Garhy.

He added in an interview with Sada El-Balad channel that Egypt`s budget deficit dropped to 10.9% of GDP instead of 12.5% during the past fiscal year (FY), which ended June 30, and the annual economic growth rate increased to 4.1%, which is above the expected rate.

El-Garhy stressed that these outcomes came as a result of the International Monetary Fund-backed plan to repair public finances.

Egypt's economic growth had deteriorated since the 2011 uprising that toppled long-time autocrat Hosni Mubarak and drove tourists and foreign investors away, drying up foreign reserves.

President Abdel Fatah al-Sisi has pledged to reduce joblessness to 10 percent over the next few years, a target that will require higher levels of economic growth.

Egypt signed a $12 billion International Monetary Fund loan program last year aimed at reviving the economy. It has since then floated the Egyptian pound and imposed economic reforms, including subsidy cuts and tax hikes, as part of the three-year IMF deal.