Egypt to approach pre-crisis primary surplus of 2% in FY2022/23

The database showed that global debt had jumped significantly by 28 percent in 2020 to reach $226 trillion, accounting for 256 percent of world’s GDP.

The IMF attributed this surge in global debt to the countries’ need to protect people’s lives, preserve jobs, and avoid a wave of bankruptcies due to the pandemic.

In an exclusive interview, Ahram Online discussed the new updates, particularly regarding Egypt’s debt situation, with the Head of Fiscal Affairs Department at the IMF Vitor Gasper.

For Egypt, the IMF’s updated database showed that Egypt’s gross public debt to GDP ratio stood at 91.4 percent in 2021, which is the same level the IMF announced in October.

Ahram Online: What are the key drivers of the new surge in the global debt to GDP ratio?

Vitor Gasper: In 2020, the surge in the global debt reflected increases in both public and non-financial private debt. In both cases, it was driven by the global health crisis.