Government Debt in Egypt Falls 11% Over Two Years as Growth Accelerates

Government debt in Egypt has recorded a notable decline over the past two years, with the ratio of budget-sector debt to GDP falling by more than 11%.

This improvement underscores progress in fiscal reform and sovereign debt management.

The finance minister said the strategy aims to bring government debt below 80% by next June, supported by an integrated policy framework and strong institutional coordination.

He stressed that any exceptional revenues will continue to be directed toward reducing the size and ratio of government debt, strengthening fiscal sustainability.

Authorities are also expanding the use of innovative financing tools, including debt-for-investment swaps and debt exchanges, to boost spending on human development and social protection while improving the quality of public expenditure.

Meanwhile, economic growth accelerated in the first quarter of the current fiscal year to exceed 5.3%.

Egypt achieved a primary surplus of 3.6% of GDP last year and targets 4% this year, alongside robust private-sector growth and improved fiscal and tax performance—factors that support continued reductions in government debt over the medium term.