Cairo – July 29, 2024: In its latest monthly report, the Ministry of Finance revealed that Egypt successfully lowered its Debt-to-GDP during the previous fiscal year (FY2023/2024) which declined to 89 percent from 95.7 percent in FY2022/2023.
Looking ahead, the government targets a further reduction to 88.2 percent of GDP by the end of FY2024/2025.
The country’s efforts to narrow its debt-to-GDP ratio are in line with Egypt's goal to achieve a debt of below 80 percent of the GDP by 2027 in accordance with International Monetary Fund (IMF) loan program.
Local debt decreased to 66.7 percent of GDP from 70.5 percent in FY2022/2023, while external debt dropped to 22.3 percent in Fy2023/2024 from 25.2 percent.
Debt servicing remains a substantial portion of Egypt's fiscal obligations, consuming nearly 60 percent of total revenues and expenses in FY2023/2024, increasing from around 25 percent in FY2023/2024.
According to the report, Egypt’s debt services exceeded LE 1.1 trillion in FY2023/2024.
Revenues in FY2023/2024 reached LE 2.1 trillion, equivalent to 18.1 percent of GDP, up from LE 1.6 trillion (15.5 percent of GDP) in FY2022/2023. Tax revenues alone contributed significantly to this increase, rising to LE 1.5 trillion from approximately LE 1.2 trillion the previous year.
Expenditures climbed to almost LE 3 trillion in FY2023/2024, amounting to 25.3 percent of GDP – the highest recording in the past 5 fiscal years – compared to LE 2.1 trillion (21.6 percent of GDP) in FY2022/2023.
Citing government sources, several media outlets reported last week that Egypt's external debt decreased to $153.86 billion by the end of May 2024, down from $168.03 billion recorded in December 2023, an 8.43 percent reduction.
In a more recent statement, Minister of Finance Ahmed Kouchouk highlighted a remarkable 59.3 percent annual growth in revenue, underscoring the government's successful efforts to reduce the total deficit by approximately LE 706 billion compared to the revised budget.
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