CAIRO: The finance minister said Thursday that he expects the nation's budget deficit to fall to 5.5 percent of gross domestic product (GDP) this year, largely because of a bigger-than-expected sale price for a mobile phone license.

"This is a windfall. We expect the budget deficit this year to be 5.5 percent of GDP," Youssef Boutros-Ghali said, speaking at the CATO Institute.

Egypt had a budget deficit of about 7 percent of GDP in 2006.

The finance minister said he expects healthy economic growth this year. "We're looking at 7 percent for the remainder of this year," he said.

To help bring the budget in balance, Egypt has several privatization projects under way. "I am looking at somewhere [around] LE 15 to LE 20 billion," he said, which represents about 3 percent of GDP.

Following a cabinet reshuffle in 2004, Egypt has undergone privatization reforms that have helped growth in GDP to accelerate to 6.9 percent in 2005/2006 from 4.2 percent in 2003/2004.

"Today we have a system that is self-perpetuating in terms of reforms," Boutros-Ghali said, adding that he is confident trade relations will improve with the United States over time.

"There is a future that translates into closer interactions," he said.

In addition, Butros-Ghali said he expects inflation in Egypt to moderate by this summer.