Title: Egypt will struggle to service high-interest loans
Abstract: Subject Budget analysis. Significance On June 30, President Abdel Fattah el-Sisi approved Egypt's budget for the 2019/20 fiscal year (FY), which started on July 1. The budget assumes 6.0% GDP growth and a 7.2% deficit, compared to 5.6% growth and an 8.4% deficit for the previous fiscal year. However, these numbers are distorted through a number of mechanisms. Impacts Investors in the short-to-medium term will continue to reap high profits from Egypt's government bonds. Egypt is steadily accumulating debt, but the government's fiscal policy suggests plans to stabilise this. The private sector will find it ever more difficult to compete with military-led enterprises, which enjoy special privileges. The military's role in the economy is a subject of speculation, but is thought to be growing. Military spending does not factor into public expenditure, casting doubt on the accuracy of the state budget.
Publication Year: 2019
Publication Date: 2019-08-14
Language: en
Type: other
Indexed In: ['crossref']
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