Cairo – Egypt has recorded a primary surplus of LE 90 billion in the first quarter of the fiscal year 2024/2025, a significant achievement that exceeds last year’s figures by more than four times. The announcement was made by Finance Minister Ahmed Kouchouk during a recent meeting with 60 international investors.
This fiscal surplus highlights the country’s ongoing efforts to stabilize its economy, demonstrating notable improvement in its financial performance. Minister Kouchouk also revealed that Egypt’s budget entities successfully reduced their external debt by approximately $4 billion in 2023. As a result, the country’s debt-to-GDP ratio dropped from 96 percent in June 2023 to 89.6 percent by June 2024, reflecting progress in managing national debt.
Investors expressed strong interest in Egypt’s financing strategy for FY2024/2025, with Kouchouk emphasizing that rising worker remittances, a rebound in tourism, and increased foreign direct investment (FDI) are contributing to the country’s economic growth and boosting its outlook. These factors are helping to support the government’s efforts to stabilize and grow the economy despite global challenges.
In addition, Kouchouk announced that Egypt’s Cabinet had approved new tax legislation aimed at supporting small businesses. The reforms simplify tax processes, resolve existing tax disputes, and focus specifically on enterprises with annual revenues of up to LE 15 million. The new tax framework is designed to stimulate growth in Egypt’s small business sector, which plays a crucial role in job creation, particularly among young people, and in broadening the country’s economic base.
During a weekly news conference, Kouchouk stressed the importance of a streamlined tax environment to foster entrepreneurship and ensure that small businesses and startups can thrive in the evolving economic landscape. These initiatives are part of Egypt’s broader strategy to enhance economic resilience and create more opportunities for sustainable growth.
