Egypt’s Public Debt Sustainable, but Without High Probability: IMF

The International Monetary Fund (IMF) has assessed Egypt's public debt as sustainable, but not with a high probability, according to a report issued on the 1st of September 2020. The IMF forecasted the level of public debt to exceed projections from previous fiscal years, with public debt expected to resume its decline from the 2021/22 fiscal year (FY). The primary surplus is anticipated to return to 2.0% of gross domestic product (GDP) within the same period. Egypt’s funding gap is anticipated at USD 14 billion during FY2019/20 and FY2020/21.

Real GDP growth is projected to decline to 2.8% in FY 2020/21 from the 5.5% average in FY2017/18 and FY2018/19. At present, the COVID-19 crisis continues to take a negative t...