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Egypt foreign reserves rise to $44.11 billion

Egypt foreign reserves rise to $44.11 billion

Egypt’s net foreign reserves edged up to $44.11 billion at the end of March from $44.06 billion the previous month, the central bank said on Wednesday.

Egypt’s foreign reserves stood at $42.61 billion at the end of March 2018, according to Reuters. The Government of Egypt is currently implementing bold reforms to address the deep-seated issues needed for achieving the World Bank Group’s twin goals of eliminating extreme poverty and promoting shared prosperity. The reforms, supported under the Country Partnership Framework, have helped to stabilize the economy.

In FY18, real gross domestic product (GDP) grew by 5.3 percent, compared to an average of 4.3 percent in the three years before, according to the World Bank. “This pickup in growth has been driven by public investments, private consumption, and exports of goods and services, while the private sector response is delayed. Although still high, inflation has begun to ease over the past 18 months, slowing from a record 33 percent in mid-2017 to 12.7 percent in January 2019.”

Important fiscal reforms on both the expenditure and revenue sides have prompted a gradual decline in the fiscal deficit, but the public debt ratio remains elevated. Over the past three years, the overall fiscal deficit narrowed by three percentage points to 9.7 percent of GDP in FY18, while the deficit in the primary balance improved by 3.6 percentage points—and turned positive for the first time in more than 15 years—during the same period, according to the World Bank latest report.