Egypt’s overall debt to the GDP has decreased by 10.9 percentage points (pp) between the third quarter (Q3) of 2017 and Q3 of 2018, much originating from the government with -7.1 pp, and the non-financial corporates by -2.9 pp, according to the Institute of International Finance’s report (IIF) of monitoring debt in the Middle East.
The report explained that Egypt’s public debt recorded 94.7% of the GDP in Q3 of 2018, down from 101.8% of the GDP in Q3 of 2017, which is a decrease of 7.1 pp.
Meanwhile, the report explained that Egypt’s non-financial corporates’ debt reached 25.9% of the GDP in Q3 of 2018, down from 28.8% in Q3 of 2017, a decrease of 2.9%.
Furthermore, the IIF declared that Egypt’s households’ debt decreased by 0.6 pp, as it reached 7.0% of the GDP in Q3 of 2018, down from 7.6% in Q3 of 2017.
In addition to that, Egypt’s financial sector’s debt reached 5.4% of the GDP in Q3 of 2018, compared to 5.7% of the GDP in Q3 of 2017, a decrease of 0.4 pp.
Concerning the global debt, the IIF explained that the global debt has risen by more than 3 pp since 2017, exceeding 318% of the GDP in Q3 of 2018.
This is however slightly lower than the all-time high of 320% in Q3 of 2016, helped by the cyclical pickup in the global growth during 2017/18.
Moreover, The IIF asserted that the global debt is now more than three times the size of the world economy.