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Egypt seeking growth rate of 5.7% of GDP for FY2022/2023 | FinMin

Egypt is looking to bring the country's debt-to-GDP ratio down to less than 90% in the next fiscal year (FY 2022/2023)

By: Business Today Egypt

Wed, Jan. 5, 2022

Egypt is aiming for a growth rate of 5.7% of gross domestic product (GDP) during fiscal year (FY) 2022/2023, targeting a gradual climb to 6% by 2024-2025, announced Minister of Finance, Mohamed Maait earlier today.

Accordingly, the draft budget for the next fiscal year (FY 2022/2023) will direct more investments towards improving citizens’ lives and facilitating decent livelihoods, in implementation of presidential directives.

Egypt is looking to bring the country's debt-to-GDP ratio down to less than 90% in the next fiscal year (FY 2022/2023), and to 82.5% by June 2025, Maait explained.

Public investments will be expanded, the minister explained, in order to raise the efficacy of basic services, in conjunction to Egypt’s Hayah Karima (Decent Life) initiative, and raise the living standard for around 60% of Egyptians.

It will also contribute to empowering citizens to benefit from economic growth, creating job opportunities, and expand social services to target more underserved citizens, the minister added.

Maait noted that the government is prioritizing programs in health and education, investing in human capital and enhancing development efforts in various fields.

The new draft budget will promote economic activity by supporting broad structural reforms in multiple sectors, encourage the private sector to further invest in economic growth, localize industries, and stimulate exports to create a more attractive environment.

It also aims to reduce the debt service ratio to of total budget expenditures to less than 30%, compared to their previous target of 31.5% for FY 2021/2022.