Economist says Egypt’s debt servicing bill exceeds 50% of public spending

Economic expert Nermin Tahoun said that Egypt’s debt servicing bill currently exceeds 50 percent of public spending, which poses a major challenge for the state.

She added that the Finance Ministry’s announcement of a primary surplus of 3.1 percent of GDP from the July 2024-April 2025 period strongly indicates improved public financial management, and provides greater confidence in the government’s ability to adhere to the path of economic reform.

This surplus, the highest in Egypt’s history, is equivalent to nearly LE600 billion and comes at a highly sensitive time, as the global economy is experiencing inflationary pressures and a decline in capital flows to emerging markets.

Tahoun explained that this achievement was made despite a decline in revenues from some vital sectors, such as the Suez Canal and the petroleum sector, while Suez Canal revenues declined by approximately 40 percent during the first quarter of 2025.