Egypt Targets 78% Debt Ratio by 2027 as Q3 Growth Reaches 5%
Updated
Updated · Daily News Egypt · Jun 24
Egypt Targets 78% Debt Ratio by 2027 as Q3 Growth Reaches 5%
3 articles · Updated · Daily News Egypt · Jun 24
Summary
Egypt’s newly approved budget aims to cut debt to about 78% of GDP by June 2027 and trim external debt by $1 billion to $2 billion, Prime Minister Mostafa Madbouly said.
A 5% third-quarter growth rate underpinned that plan despite fallout from the US-Iran war, with the petroleum sector returning to growth after arrears were settled and exploration resumed.
The budget also seeks to lower financing needs to 10% of GDP and debt service to 35% of spending, while allocating EGP 837 billion for social protection, EGP 822 billion for wages and EGP 80 billion for industry support.
Private investment has risen to 56.5% from under 40% in recent years, and the government wants the private sector’s share of state investment to reach 65% before 2030, backed by a $3.1 billion East Cairo project and more than $5 billion from Scatec.
Tourism, however, has weakened since May because of the regional conflict, prompting Egypt to speed incentives for investors even after first-quarter arrivals had grown 16% following a record 19 million visitors last year.
With a widening trade deficit, can Egypt's ambitious budget truly reduce foreign debt and spur growth?
As Egypt boosts social spending during reforms, will citizens feel the benefits or just the fiscal squeeze?
Egypt's economic plan bets on a massive 59% private investment share. Is this a realistic goal or a risky gamble?
Egypt’s 2026/27 Budget: Ambitious LE 190.3 Billion Asset Investments, 5.4% Growth Target, and Human Development Focus
Overview
Egypt’s 2026/27 state budget, approved in June 2026, sets a clear path for economic growth and fiscal discipline. The government has significantly increased its investment in domestic and foreign financial assets, aiming to strengthen national development and secure long-term benefits. Finance Minister Ahmed Kouchouk highlights a strong commitment to prudent fiscal management, with a focus on maintaining reserves to handle risks and unexpected challenges. The budget also prioritizes directing government spending toward programs that deliver the greatest economic and social impact, ensuring public funds are used effectively to improve citizens’ well-being and support sustainable development.