Egypt’s external debt increased by $3.5 billion in the last quarter of 2023, reaching a total of $168 billion, according to data from the Egyptian Ministry of Planning.
The Central Bank of Egypt had earlier reported that the country’s external debt stood at $164.5 billion at the end of September, accounting for 42.4% of the Gross Domestic Product (GDP).
Long-term debts constitute approximately 81.6% of the total external debt.
Over the past decade, Egypt’s foreign debt has roughly quadrupled, coinciding with the government’s expenditure on public projects.
Last month, Cairo secured an $8 billion financial support package from the International Monetary Fund (IMF).
Finance Minister Mohamed Maait projected that Egypt’s GDP would grow by approximately 2.8% in the fiscal year ending in June and by 4.2% in the next fiscal year.
The IMF forecasts a 3% GDP growth for the current calendar year. This financial manoeuvring comes as Egypt navigates through economic reforms and infrastructural developments to boost its economy amidst global challenges.
Last March, Egypt received approval from the IMF’s Executive Board for an increase in its extended financial support program to $8 billion. This allows for an immediate withdrawal of about $820 million.
The fund agreed to expand the scope of the agreement after Egypt’s struggling economy was further impacted by the war in Gaza, which slowed tourism growth and prompted Houthi attacks in the Red Sea. This led to a halving of the Suez Canal revenues, a major source of foreign currency for Egypt alongside tourism and shipping.
The IMF Executive Board also announced the completion of the first and second reviews under Egypt’s Extended Fund Facility.
The statement mentioned, “The challenging external environment created by Russia’s war in Ukraine was further exacerbated by the war in Gaza, as well as tensions in the Red Sea.”
