Egypt’s Government Debt Falls to 81.9% of GDP by End-June 2026
Egypt’s Ministry of Finance said economic and fiscal reforms have contributed to improving public finance indicators and supporting stronger economic activity, with the government debt-to-GDP ratio declining to 81.9% by the end of June 2026.
The ministry’s statement followed Moody’s decision to raise Egypt’s credit rating to B3 with a positive outlook, citing expectations for stronger economic growth and continued progress in economic reforms.
International Reserves Reach $57 Billion
The Ministry of Finance said stronger economic activity has helped reduce the government debt ratio as Egypt continues to implement fiscal and economic reforms.
Net international reserves also rose to $57 billion in September, strengthening the country’s external financial position.
Meanwhile, tax revenues increased to 13% of GDP, representing a rise of 1.6 percentage points over two years without imposing additional tax burdens.
Debt-Service Costs Remain a Key Challenge
Despite the improvement in public finance indicators, the Ministry of Finance noted that rising debt-service costs remain one of the main challenges facing the country’s fiscal position.
The government is therefore working to accelerate efforts to reduce the debt-service burden and create additional fiscal space that can be directed toward priority sectors.
The ministry said Moody’s positive outlook reflects expectations of stronger economic growth as Egypt continues its reform program, maintains fiscal discipline and supports production and exports.
Egypt Seeks to Boost Private Investment
The government is also focusing on improving the business environment, simplifying procedures and strengthening competition to attract greater private-sector investment and increase productivity.
According to the Ministry of Finance, economic and fiscal policies aim to balance financial stability with economic growth by continuing structural reforms and providing targeted support to the business community.
The government is also seeking to strengthen the economy’s ability to withstand external shocks by raising productivity and increasing the private sector’s contribution to economic activity.
Health and Education Among Spending Priorities
The Ministry of Finance emphasized that reducing debt-service costs and creating additional fiscal space will remain priorities during the next phase.
The additional financial room is expected to allow the government to allocate more resources to key sectors, particularly healthcare, education and targeted social protection programs.