Egypt targets debt-to-GDP ratio to drop to 75% by 2027, Finance Minister

Cairo – December 26, 2023: Finance Minister Mohamed Maait shared that Egypt aims to lower the debt-to-GDP ratio to 75 percent by 2027 in a recent statement, noting that Egypt reported a drop to 95.7 percent in June 2023.

The finance minister expects that the Egyptian economy will have positive growth in the upcoming fiscal year, highlighting that it has been able to navigate global crises in the past few years and its adaptability to external and internal challenges.

Egypt set ambitious targets for the current fiscal year 2023/2024, aiming for the largest primary surplus in its history at 2.5 percent, he added. The country is also working towards reducing the budget deficit rate to 6 percent of the domestic product by June 2023, with expectations of it further decreasing to 5 percent by June 2027.

Maait attributed this optimistic outlook to the ongoing improvement of infrastructure and the continuation of structural reforms, which he believes will stimulate economic stability by creating broader opportunities for the private sector — a key driver of development, recovery, and economic growth – particularly in the year 2024.

To foster a favorable environment for investments, both local and foreign, the government is actively encouraging Egyptian investors and international partners to leverage competitive incentives offered by the Egyptian economy, Maait stressed.

Egypt is focused on driving production and export expansions, positioning itself to attract more investment flows, he highlighted, noting the various adopted programs to support green investments, monetary benefits and tax and customs incentives.

In the statement, Maait shared that the health sector received an increase of 30.4 percent in state investments, reaching around LE 397 billion, while pre-university and university education allocations were up by 24.3 percent to LE 591.9 billion, financial support for scientific research rose by 17.5 percent to LE 99.6 billion.