Emerging-market debt as a proportion of GDP reached a record high in 3Q 2022 even as the amount of debt slipped during the quarter, according to a report from the Institute of International Finance (IIF) picked up by Reuters. The debt-to-GDP ratio in emerging economies rose to 254% in the July-September period, matching the all-time high recorded in 1Q 2022, due to widening budget deficits and weaker economic growth, the IIF said in its latest Global Debt Monitor. Despite this, EM debt levels fell to USD 96.2 tn from USD 98.7 tn in 2Q.

Meeting interest payments is only going to become more challenging as interest rates continue to rise across the world. “In the face of tightening global financing conditions, access to international markets has become even more challenging for many high-yield borrowers this year,” Emre Tiftik, director of sustainability research at the IIF, wrote in the report. “The global sovereign interest bill is set to increase rapidly, notably for sub-Saharan Africa but also in EM Europe.”

ALSO WORTH NOTING-

• HP plans to cut 12% of its global workforce — between 4-6k jobs — by the end of FY 2025, becoming the latest tech firm to announce layoffs amid a tougher economy. (Statement ︱Reuters)
• Emaar looks overseas: Emirati real estate developer Emaar will allocate more than half of the AED 8 bn (USD 2.13 bn) in planned capital spending over the next four years to investments outside of the UAE in a bid to strengthen its footprint overseas. (Bloomberg Asharq)
• UK economic activity shrinks again as recession deepens: The UK purchasing managers’ index (PMI) clocked a fourth consecutive month of contraction, as new orders plunged at their fastest pace in two years. (Financial Times)

	EGX30	12,600	-0.2% (YTD: +5.5%)
	USD (CBE)	Buy 24.51	Sell 24.60
	USD at CIB	Buy 24.52	Sell 24.58
	Interest rates CBE	13.25% deposit	14.25% lending
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THE CLOSING BELL-

The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 1.68 bn (27.8% above the 90-day average). Local investors were net buyers. The index is up 5.5% YTD.

In the green: QNB AlAhli (+11.9%), Fawry (+6.5%) and Sidi Kerir Petrochemicals (+3.9%).

In the red: CIB (-2.5%), Rameda Pharma (-1.7%) and Heliopolis Housing (-1.5%).