Egypt’s Financial Woes Mount: Record Debt & Deficit As Devaluation Looms

15 Dec 2023 Issue: 66 / 50 By: Peter Stevenson

Egypt’s President Sisi is set to begin his third term with a growing economic crisis. A further currency devaluation looks imminent as Cairo struggles to persuade the IMF to hand over more cash.

With Egyptians wrapping up voting in their presidential election on 13 December, MEES is prepared to call it early for incumbent President Sisi. Not only is the result not in doubt, equally clear is that Egypt faces daunting economic challenges as the president enters his third term.

Egypt is on track for a record deficit for 2023-24, both in absolute terms and as a share of GDP. Awkwardly for Mr Sisi, and no doubt part of the reason he brought forward the vote (MEES, 27 October), this year’s figures look set to be even worse than those of the 2012-13 annus horribilis that precipitated the coup that brought him to power. Record debt means record interest payments are soaking up a massive 60% of spending, whilst gas output has slumped and war in Gaza threatens tourism and Suez Canal revenue. With Cairo struggling to persuade the IMF to hand over more cash, a further devaluation looms. (CONTINUED - 1661 WORDS)