Egypt parliament passes budget aiming for 5.2 per cent growth

CAIRO – Egypt’s parliament has approved a draft budget projecting 5.2 per cent growth for the coming year.

The state news agency says the house of representatives voted Wednesday in favour of the 2016-2017 draft budget, which anticipates a deficit of 9.8 per cent, compared to 11 per cent this year.

Egypt’s economy is still struggling to recover from years of unrest since the 2011 uprising, and the bombing of a Russian passenger plane over the Sinai last year dealt a major blow to the vital tourism sector. Annual inflation hit 12.23 per cent in May, the highest level in seven years, driven in part by dollar appreciation.

A bloc of 40 lawmakers rejected the budget, saying the state had gone too far in cutting fuel subsidies.