Egypt Achieves 164.3 Billion Pound Surplus, 1.7% of GDP Amid Economic Challenges

The government announced that the state achieved a surplus of 164.3 billion Egyptian pounds, amounting to 1.7% of the Gross Domestic Product (GDP). 

The Information and Decision Support Center of the Cabinet released a booklet to respond to the main inquiries of local and international investors, to be presented to Dr. Mostafa Madbouly, the Prime Minister, and to be published in the media.

Osama El-Gohary, the Prime Minister's assistant and head of the Information and Decision Support Center, explained that the booklet is part of the state's interest in improving the investment climate in Egypt and attracting more local and foreign investments. 

The goal is to provide more information and to achieve effective communication with investors; hence, the booklet addressed (17) main questions from investors.

Regarding the impact of currency devaluation and rising interest rates on Egypt's debt service, the booklet clarified that the debt rate is affected by the exchange rate, which explains the recent increase in the public debt to GDP ratio.

However, it is expected to decrease starting from the fiscal year 2023/2024 and over the next four years. 

The preliminary results of the final account of the fiscal year 2022/2023 are reassuring, given the exceptional situation of the global economy, where the state achieved a primary surplus of 164.3 billion Egyptian pounds, which is 1.7% of the GDP. 

The total deficit reached 6.2% compared to 6.1% in the fiscal year 2021/2022. Without the rise in interest rates, the change in the exchange rate, and inflationary effects, the financial performance would have been much better.

Maintaining the deficit at 6.2% amid international changes, which necessitated urgent and ongoing interventions to contain the negative repercussions and extend social safety nets, indicates the Egyptian state's ability to manage public finances prudently.