The Economic Pulse

Egypt has made substantial progress in addressing its economic challenges, underlined by strategic steps in fiscal consolidation and commitments to economic enhancement. This is evident from the substantial developments across the political and economic landscape. Notably, the country has made significant strides in debt management, paying $25 billion since March 2024, which represents 7% of its GDP.

This substantial reduction in debt underscores Egypt's dedication to fiscal discipline. Moreover, by the end of the first quarter of 2024, Egypt's external debt was further reduced by $7.427 billion, a 4.4% decrease, to a total of $160.607 billion.

In addition to these fiscal improvements, PM Madbouli secured $320 million in grants through four agreements with the European Union. These agreements are aimed at bolstering various sectors within Egypt and enhancing regional economic cooperation. On the monetary front, these measures have been accompanied by a significant increase in foreign reserves, which reached a new high of $46.1 billion.

Concurrently, the IMF released a $820 million tranche from its extensive $8 billion loan program, which focuses on public debt reduction, privatization, and improving the investment environment.