Egypt’s real Gross Domestic Product (GDP) saw a modest growth rate of 2.7% in Q1 FY2023/2024 to record EGP 2.14 trillion, up from EGP 2.09 trillion in FY2022/2023, according to a new report by the Central Bank of Egypt (CBE).

The state budget deficit expanded by EGP 249.1 billion to EGP 455.9 billion for Q1 FY2023/2024, compared to EGP 206.8 billion during the same period in FY2022/2023, letting the deficit-to-GDP ratio rise to 3.5% from 2.3% a year earlier.

The government was able record a primary surplus of EGP 21.6 billion, up from EGP 10.2 billion during the same period the previous year, according to the report.

Egypt’s total revenues reached EGP 335.1 billion (2.6% of GDP) for the July/September period of FY2023/2024 period, a rise of EGP 76.3 billion or 29.5% from EGP 258.8 billion (2.8% of GDP) the previous year.

This was driven by increased tax revenues, which rose by EGP 73.6 billion or 34.8% to EGP 285.0 billion, and non-tax revenues, which grew by EGP 2.7 billion or 5.6% to EGP 50.1 billion.

Tax revenue increases included EGP 27.6 billion from VAT on goods and services, EGP 25.7 billion from income and capital gains taxes, EGP 14.7 billion from property taxes, and EGP 5.6 billion from customs duties.

Non-tax revenue growth was primarily driven by higher property income, which rose by EGP 5.9 billion, while other categories saw mixed results, the CBE explained.

Total expenditures for the period reached EGP 790.8 billion (6.1% of GDP), a significant increase of EGP 324.4 billion or 69.6% from EGP 466.4 billion (5.1% of GDP) the previous year.

In terms of domestic public debt, it amounted to EGP 4742.1 billion at the end of June 2020, up from EGP 4282.1 billion a year earlier.

The debt-to-GDP ratio increased to 77.1% in June 2020 from 76.5% the year prior.

The ratio of external debt to GDP stood at 42.4% at the end of September 2023, against 40.5 percent at the end of June 2023.