Egypt's foreign debt increases by $3.5b

RIYADH, Apr 18 (Arab News): Egypt's foreign debt increased by $3.5 billion in the fourth quarter of 2023, reaching a total of $168 billion, as reported by the nation's planning ministry.

This marks a climb from the $164.5 billion recorded at the end of September, representing 42.4 per cent of the nation's gross domestic product. Notably, 81 per cent of this debt is categorized as long-term.

This uptick in foreign borrowing is part of a broader trend over the last decade, during which Egypt has significantly increased its external debt, investing heavily in state-driven projects.

This financial strategy was underscored last month by an $8 billion economic support package secured from the International Monetary Fund.

Amid these monetary maneuvers, Egypt's Finance Minister Mohamed Maait recently projected that the country's GDP would grow by 2.8 per cent in the fiscal year ending in June 2024, with expectations of an acceleration to 4.2 per cent in the following year.

These figures are closely aligned with the IMF's more conservative forecast of 3 per cent GDP growth for the calendar year 2024, indicating optimism about Egypt's economic trajectory despite its growing debt burden.