Egypt’s total state debt could widen 88% of GDP in FY20/21 if coronavirus crisis remains – minister

Egypt’s total state debt could rise to 88 percent percent of GDP from a previously projected 83 percent during  the financial year that will begin in July, if coronavirus crisis continues until the end of December, its finance minister said on Tuesday.

Mohamed Maait said Egypt’s budget deficit for the financial year, which will begin in July, is set to widen to 7.8 percent of gross domestic product from a previously projected 6.2 percent.

The government had projected a primary surplus of 2.0 percent before the crisis hit, but this would fall to only 0.6 percent should the crisis continue, Maait said at a planning committee meeting at parliament.

Tourism, which accounts for 5 percent of GDP, came to a virtual halt in March after the government closed down most commercial flights. Remittances from Egyptians working abroad, which accounts for 10% of GDP, have also come under threat. The country has been put under a nighttime curfew.