Egyptian economist Mostafa Badra commented on statements by Finance Minister Mohamed Moait that the level of debt in Egypt has risen as a result of the depreciation of the pound, as it increased to 1.8 trillion pounds.
Badra said in statements to RT: “The finance minister delivered a 2023/2024 budget statement to parliament that makes it clear that the global economic impact is affecting the Egyptian state’s sources of income and growth rates.”
The Egyptian economist explained that the global economic situation has affected the overall budget of the Egyptian state, and it has significantly decreased compared to the still unfinished 22/23 budget, in which loans could be limited, but unfortunately the matter will be stretched into the next financial year.
He added that the growth rate will remain within the norm or at the level reached this year and could reach about 4% or slightly more in the next financial year, as the budget deficit is estimated to be about 5.5%.
Egyptian expert Mostafa Badra noted that the economic effects were expected by most economists not in the Egyptian state, but at the global level, adding that discussions have been and will continue until about next month before increasing budget allocations.
He stressed that the proposal program and the economic reform program with the International Monetary Fund and the World Bank, if there is a recession or lack of acceleration, will have a clear impact on the state budget next year, in addition to the lack of additional funding. for outside parties.
Egyptian Finance Minister Mohamed Maait expected the debt to reach 95% of GDP in the new budget due to high inflation, which led to an increase in the cost of servicing the debt.
Source: RT
Cairo - Nasser Hatem
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