Egypt’s government gross debt projected to jump to 92.9% of GDP in 2021: IMF

The Egyptian government’s gross debt may jump  to 92.9 percent of GDP in 2021, up from 90.2 percent in 2020,, according to the International Monetary Fund (IMF).

However, it is expected to decline to 88.9 percent in 2022 and down to 73.4 percent by 2026

The figures came within the IMF’s fiscal monitor report, released on Wednesday, amid the IMF and the World Bank’s spring meetings that kicked off on Monday.

According to the report, Egypt’s government’s gross debt to GDP ratio reached its highest in 2017 to post 103 percent, but it started to decline as of 2018, reaching 92.5 percent and 84.2 percent in 2019 before increasing in 2020 as a result of the pandemic’s economic repercussions.

Meanwhile, Egypt’s general government net debt is expected to increase to 83.2 percent of GDP in 2021, up from 79.5 percent in 2020, and to decline again to reach 81 percent in 2022, reaching 66.7 percent by 2026.

On the other hand, Egypt’s general government’s overall balance is expected to see a slight improvement, reaching 7.3 percent of GDP in 2021, up from -7.9 percent and -8 percent in 2020 and 2019 respectively, and it is projected to reach -5.8 percent by 2022 and up to -4.2 percent by 2026, according to the report.

Egypt’s government’s primary balance is projected to drop to 1 percent of GDP in 2021, down from 1.3 percent in 2020, before rebounding to 2.2 percent in 2022, according to the report.