Egypt’s external debt jumped by 21% in 3Q2020-2021 to USD 134.8 bn, compared to USD 111.3 bn in the same period in the previous fiscal year, according to central bank figures released yesterday. On a quarterly basis, external debt increased 4.3% from USD 129.2 bn in the second quarter.

Blame lower foreign inflows: In May S&P forecast that Egypt’s external debt would continue to deteriorate during the remainder of the fiscal year due to lower foreign inflows.

This should change in the coming months as tourism revenues and Suez Canal receipts continue to rebound, resulting in a “gradual improvement” of government debt levels, the ratings agency said.

OTHER ECONOMY NEWS-

The Egyptian economy grew at a 2.8% clip in FY2020-2021, Planning Minister Hala El Said told CNBC Arabia in what we’re assuming are preliminary growth figures for the fiscal year that finished less than two weeks ago. The minister didn’t provide a growth figure for the fourth quarter of the fiscal year.

This is a slowdown from the 3.6% recorded in FY2019-2020 that witnessed a 1.7% contraction in the fourth quarter due to the covid-19 pandemic and the government’s lockdown measures.

A return to normalcy this year? The Finance Ministry expects the Egyptian economy to return to near pre-pandemic growth levels, expanding at a 5.4% clip.