The economic growth rate continued to increase during the fourth quarter (Q4) of fiscal year (FY) 2014/2015 at 4.5%, compared to 3.8% during corresponding quarter of FY 2013/2014. The economic growth rate was 4.2% during FY 2014/2015 compared to 2.2% during the same period of FY 2013/2014. On 30 November, the government announced its FY 2016/2017 targets and that it is eyeing a budget deficit of 9.5% of the gross domestic product (GDP). Further, it expects economic growth to be between 5% and 5.5%. Public debt is expected to range between 88% and 90% of GDP. Despite the gradual improvement in the economic activity, there are a number of challenges the government is aware of and working on. Challenges include the rise of the state budget deficit. Minister of Finance Hany Kadry Dimian previously announced it is targeting a budget deficit of 10% to 10.5% during the last FY, which was not realised in the final account. The decline in exports, the growing trade deficit, and the rise in unemployment were also part of those challenges. According to the Central Agency for Public Mobilisation and Statistics (CAPMAS), the rate of unemployment registered 12.8% in Q3 2015. The government's FY 2016/2017 budget plans include decreasing the unemployment rate to 10%. Executed investments reached EGP 334bn during FY 2014/2015, of which EGP 191bn were contributed by private sector investments. All public companies' investments amounted to EGP 26b and economic authorities' investments amounted to EGP 55bn. The rate of contribution of the public sector in executed investments was 18.5%, at EGP 62bn in 2014/2015. During the same quarter, public revenues rose to EGP 465bn, an increase of EGP 8.4bn, compared to last FY. The share of taxes in the aforementioned figure was EGP 306bn, up from EGP 46bn from in the same quarter of the previous year. Public expenses inched up by 0.5% to reach EGP 733bn, compared to EGP 702bn the previous year.
