Electronic transfers

Egypt aims to reduce debt ratio to less than 90% of GDP by 2025

Egypt aims to reduce the debt-to-GDP ratio from 90% by the end of the current financial year to 85% by 2025, Finance Minister Mohamed Maait said on Saturday.

It also targets a primary surplus of 1.3% and aims to reduce the budget deficit to 6.2%, he added in a press release.

The minister said that Egypt had achieved a strong 9% GDP growth rate in the first half of the current fiscal year despite all the negative repercussions of the coronavirus pandemic and the disruption of supply chains that caused it. resulted in a strong inflationary wave and a surge in the prices of goods and services.

He added that the government aims to achieve a growth rate of 5.7% in gross domestic product by the end of the fiscal year in June, in light of the severe global economic effects that most of the world’s economies are suffering in because of the current Russian-Ukrainian crisis.

Maait attributed Egypt’s resilience in the face of global and local economic shocks to the economic reform undertaken by the government.

He said these reforms have helped improve financial and economic indicators and created an attractive environment for investors, encouraging the private sector to broaden its participation in the development process.

He also pointed out that tax revenue had increased by 13.6% between July and February 2022, hoping that this rate would increase by the end of the current financial year.

The Ministry of Finance has taken current global economic challenges into consideration in its budget for the financial year 2022/23.