Despite being affected by external factors such as the pandemic and the Russian/Ukraine war, and internal challenges like high inflation, Egypt's economic recovery and resilience shine through as public debt is down once more.

According to data collected by Business Today Egypt, the country’s fiscal policies have had a positive impact, with public debt estimated to have been significantly reduced if not for external macroeconomic factors.

Public debt, or Government debt, is the overall amount owed by various levels of government to both entities within and outside the country.

For example, in FY2020/2021, the world’s economy was gripped by the pandemic, and like most emerging markets, COVID-19 shocked Egypt’s economy.

As countries locked down, tourism fell sharply, pulling the economy down with it – before the pandemic, tourism accounted for around 12% of GDP, 10% of employment, and 4% of GDP in foreign currency inflows. This led the government to borrow to meet domestic demands amid shortages of hard cash and increased import prices.

Prime Minister Mostafa Madbouly met with Finance Minister Ahmed Kouchouk earlier this week to review the country’s ongoing efforts to reduce public debt, emphasizing the government's commitment to decreasing public debt while ensuring fiscal sustainability.

Egypt has committed to reducing its debt level to below 80% by 2027, in alignment with its International Monetary Fund (IMF) program commitments.

The government has already implemented several initiatives to boost foreign currency inflows from investments and exports, as well as stimulating private sector involvement in the economy through incentives and the IPO program.

The Ministry of Finance has repaid $25 billion of its domestic and external public debts since March, according to a recent report by the Institute of International Finance (IIF).