Egypt’s External Debt Sees Significant Decline
Egyptian Prime Minister Mostafa Madbouly announced a substantial decrease in Egypt’s external debt, dropping by over 15 billion U.S. dollars in just six months to fall below 153 billion dollars, as reported by the Egyptian cabinet.
Factors Contributing to the Decline
- The external debt stood at 168 billion dollars in December and decreased to 152.8 billion in June.
- The government’s recent measures to reform the country’s monetary policy played a key role in this decline.
Challenges Faced by Egypt
In recent years, Egypt has been grappling with a shortage of foreign currency for imports, leading to the devaluation of the local currency and high inflation.
Egypt’s inflation rate peaked at 38 percent in September, gradually decreasing to 25.1 percent in August this year.
Government’s Economic Goals
- The government aims to reduce inflation rates to less than 10 percent by the end of 2025 through rationalizing spending and increasing investments.
Positive Economic Indicators
- Egypt’s foreign currency reserves saw a significant increase to 46.6 billion dollars by the end of August, compared to 34.9 billion dollars a year ago.
- In February, Egypt signed a 35-billion-dollar investment deal with the United Arab Emirates to develop Ras Al-Hekma, a new resort town on Egypt’s northern coast, boosting the country’s financial outlook.
Conclusion
Madbouly highlighted that Egypt’s recent economic, monetary, and banking reforms, coupled with the Ras Al-Hekma deal, have positively impacted the country’s economic indicators.