Egypt’s economy is thriving despite global and regional crises, with the Ministry of Finance announcing a primary surplus of 3% of GDP during the fiscal year 2023-2024. This growth was achieved through increased non-tax revenues and tax revenues, which surpassed one trillion pounds with a growth rate of 41%, and without placing new burdens on citizens or investors.
The total deficit stabilized at 5.4%, thanks to the expansion of mechanization aimed at broadening the tax base and formalizing the informal economy. Investments funded by the state’s public treasury decreased by 19% to create space for the private sector. The government’s goal is to reduce the debt service bill to 30% of public expenditures in the medium term, aiming to lower the debt rate to 80% by June 2027. Moreover, Egypt aims to reduce the lifespan of its debt portfolio to 3.3 years by June 2024, alleviating financing needs for its general budget.
Maait also highlighted efforts made by his ministry’s Investor Relations Unit in conducting open dialogues with over 2,000 investment institutions worldwide throughout the year. The unit issues monthly reports on economic performance indicators, debt, deficit, and primary surplus rates to provide foreign investors with accurate and up-to-date information on Egypt’s economic situation.
In summary, Egypt has achieved impressive economic growth despite global and regional crises thanks to effective policies aimed at expanding its tax base and reducing its debt burden. With continued efforts from its finance ministry, Egypt is well on track towards achieving its financial goals in the medium term.
