Egypt Cuts Deficit On Back Of Gulf Cash, But More To Do

Egypt cut its budget deficit to 12.8% of GDP for the year to June 2014. This is down from 13.7% for 2012-13, though still well up on 9.8% for 2010-11. Though the deficit rose in nominal terms to E£255.4bn from E£239.8bn the previous year, in real $US terms it fell by 10% to just under $40bn (see table).

The reduction is thanks to $10.6bn “exceptional assistance” received from Saudi Arabia, Kuwait and the...