What:
In a recent snapshot of Egypt’s economic health, growth has shown signs of slowing down, dipping to 2.3% in Q2 of the fiscal year 2023-2024. This marks a slight decrease from the 2.63% growth rate in the preceding quarter and a more noticeable dip from the 3.9% growth rate recorded in the same quarter of the previous fiscal year, as per the Ministry of Planning’s latest figures.
Debt Dynamics:
Meanwhile, the landscape of Egypt’s external debt witnessed a jump, increasing by approximately USD 3.5 billion in Q4-23. This hike pushed the total external debt to USD 168 billion by the end of December 2023, up from around USD 164.5 billion at the end of September 2023.
Claps Class:
Economic growth is a vital sign of a country’s financial health, indicating how its economy is expanding and contracting over time. On the flip side, external debt gives us a glimpse into the amount owed to foreign creditors—a balancing act of leveraging global finance to fuel growth while managing repayments.
Now What:
The International Monetary Fund (IMF) projects Egypt’s economy to grow by 3% in the current fiscal year, with expectations for an uptick to 4.5% growth in the next fiscal year.
