Egypt’s Debt-GDP Ratio to be Lowered Below 80%

March 21, 2024

(3 Minutes Read)

In an open dialogue with the media, Maait also indicated that a significant portion of public investments in the state has been reserved for the private sector to flourish, underscoring that the restructuring of the state’s public finances aligns with efforts to rectify the economic trajectory.

Egypt’s Finance Minister, Mohamed Maait, stressed the government’s target to reduce the debt-to-GDP ratio to under 80% over the next three years to maintain a healthy proportion between the two macroeconomic variables.

Maait said that there was an annual limit for the debt of budgetary entities and economic bodies, which could not be surpassed without approval from the President, the Cabinet, and the House of Representatives.

The minister remarked that the anticipated inflows of foreign currency after the agreement with the International Monetary Fund (IMF) will exceed US$20 billion. The financial institutions and international development partners are set to bolster the Egyptian economy with additional financing packages. As reported by www.trendsnafrica.com, the European Union has given economic aid valued at €7.4 billion to the Northern African country, which can upswing the economic rating of the Egyptian economy.

Earlier, Mohamed Maait, announced that the total public expenditures targeted for the budget of the upcoming fiscal year 2024-25 amounted to EGP 3.9 trillion, while the expected revenue reached approximately EGP 2.6 trillion.