Egypt’s macro-fiscal situation has faced significant challenges and has deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war of aggression against Ukraine and the geopolitical tensions and conflicts in the Middle East have led to protracted capital outflows and lower foreign currency receipts, in particular due to sharply easing income from tourism, Suez Canal proceeds, and gas production amid volatility of confidence among foreign investors. This is particularly challenging in Egypt’s difficult fiscal situation, which is characterised by constant fiscal deficits and high and growing debt-to-GDP ratios. Despite that difficult external context, in 2024 Egypt was able to implement reforms, such as the unification of exchange rates and making progress in tightening monetary policy, to help preserve its macroeconomic stability.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
