30 Aug 2022

The Minister of Finance said that the Egyptian economy grew 6.6% in FY21/22, the highest growth rate since 2008, and far exceeding the average growth rate of 3.2% for emerging economies across the world.

The Minister added that for the state budget, the deficit dropped to 6.1% of GDP, down from 6.8% in FY20/21 and 13% in FY12/13. The government expects this to decline further to 5.6% in FY22/23 and 5.0% in FY23/24. The current deficit-to-GDP ratio is below the average for emerging economies. A primary surplus was recorded for the fifth year in a row, this year coming in at 1.3% of GDP. The primary surplus is expected to rise to 1.6% in FY22/23. Budget revenues grew by 19.6%, while expenses grew by 14.8%. Remittances reached a new record level of USD32.2bn, and the Suez Canal also made a record USD7bn in revenue. Spending on education increased by 23%, and on health by 21%. Unemployment dropped to 7.2% by June 2022.

The Minister continued, stating that the debt-to-GDP ratio came down significantly, reaching 87.2% from 103% at the end of FY16/17, and lower than the global average of 99%. The government is targeting a debt-to-GDP ratio of 82.5% in FY22/23, then continuing to decrease all the way to 75.0% by 2026. The exception to this trend was FY21/22, where the ratio rose to 87.4% due to the currency devaluations that occurred. The drop in the debt-to-GDP ratio in Egypt during 2016-22 contrasts with an average rise in the same ratio for emerging markets across the world. Egypt’s external debt remained stable at 19.2% of GDP, according to the Minister. (Sources: Reuters (English), Zawya (English), Egypt Today (English), Daily News Egypt (English), Business Today (English), al-Sharq al-Awsat (English), al-Maal, Mubasher, Amwal al-Ghad, al-Youm al-Saabe, al-Masry al-Youm, Sada el-Balad, Middle East News Agency, Euronews, , RT, Xinhua)