{
  "id": 12564552,
  "title": "Egypt Trims Budget Deficit as Growth Hits 5.1%",
  "url": "https://urgent.news/2026/10/07/egypt-trims-budget-deficit-as-growth-hits-5-1",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T05:53:59.000Z",
  "source": {
    "name": "The Rio Times",
    "slug": "the-rio-times",
    "url": "https://www.riotimesonline.com/egypt-budget-deficit-world-bank-2026/"
  },
  "original_language": "en",
  "account": "The World Bank's latest outlook reveals Egypt's budget deficit has shrunk and its national debt is declining, despite ongoing conflict in the Middle East. The Cairo-based lender estimates Egypt's economy expanded by 5.1% in the fiscal year ending June 2026, surpassing earlier forecasts. The budget deficit fell to 5.3% of GDP between July 2025 and May 2026, down from 6.5% a year earlier. Revenue growth, fueled by better collection of value-added and income taxes, played a key role in reducing the deficit. Non-oil sectors like tourism and IT contributed to the growth, while a one-off asset deal added to non-tax revenue. The war initially disrupted oil supplies and drove up prices, causing investor outflows and a decline in the Egyptian pound. However, confidence returned, and the exchange rate stabilized. Egypt's foreign reserves and other foreign currency assets now total US$67.4 billion, enough to cover 7.6 months of imports. The Central Bank of Egypt has kept key interest rates high since February 2026, with the next meeting scheduled for October 29. The overall budget deficit for the full year is estimated at 6.8% of GDP, down from 7.1%, while government debt fell from 82.5% to 79.2% of GDP. The World Bank expects the deficit to remain below 7% through 2028 and anticipates a primary surplus of 3.6-3.9% of GDP. Egypt's finances are significant for U.S. interests, with the country receiving substantial military and economic aid since 1978. The World Bank's outlook underscores the importance of Egypt's economic performance amid regional instability and high external financing needs.",
  "summary": "Egypt's economy grew 5.1% and its budget deficit narrowed, the World Bank says, but it still needs about US$28 billion in external financing by December. The post Egypt Trims Budget Deficit as Growth Hits 5.1% appeared first on The Rio Times .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}