Egypt’s government debt to GDP ratio declined to 88.4% in the second quarter (2Q) of 2019, down from 97.3% in 2Q 2018, the Institute of International Finance (IIF) said in its latest report.
Meanwhile, the state’s household debt to GDP remained unchanged at 7.1% in the 2Q of 2019, compared to the same period last year.
Egypt’s financial sector’s debt of the GDP slightly decreased to 5.4% during the 2Q of 2019, down from 5.5% in the 2Q of 2018.
On the other hand, the country’s non-financial corporate debt to the GDP also decreased to 22.9% of GDP in 2Q of 2019, compared to 25.9% during the 2Q of the previous year.
Notably, the government debt to the GDP in Egypt averaged 87.91% from 2002 until 2018, reaching an all-time high of 102.30% in 2003 and a record low of 73.30% in 2009, according to trading economics.
The Ministry of Finance is targeting a debt-to-GDP ratio of 82% during the current Fiscal Year (FY), seeking a debt-to-GDP ratio of 80% during the next FY, according to the ministry’s preliminary financial statement.
Regarding the global debt, the IIF`s report revealed that the global debt increased to $250.9 trn in the 2Q of 2019, up from $243.6 trn in the 2Q of 2018.
The IIF`s report showed that the global debt is projected to hit $255 trn by year’s end, spurred by looser financial conditions.
It further showed that the global debt load increased by $7.5 trn in the first half (H1) of 2019, and now hovers around a new record of over $250 trn (320% of GDP).
“China and the U.S. accounted for over 60% of the increase,” the report revealed.
Concerning emerging markets (EM), the total debt of the emerging markets recorded $71.4 trn during the 2Q of 2019, hitting a new record of 220% of GDP, compared to $66.8 trn in the same period last year.
Among emerging markets, the report declared that, Chile, South Korea, and Argentina have seen the greatest increases in debt year-over-year.
The emerging markets non-financial debt reached $31trn in the 2Q of 2019, compared to $29.5 trn in 2Q of 2018.
“State-owned enterprise (SOE) now account for over half of the emerging markets non-financial corporate debt,” according to the IIF.
The EMs households debt reached $12.9 trn in the 2Q of 2019, compared to $11.7 trn in Q2 2018, while government debt reached $16.3 trn during the 2Q of 2019, compared to $14.9 trn in the 2Q of 2018.
The EM financial debt reached $11.2 trn during the 2Q of 2019, compared to $10.7 trn.
“$9.4 trn in EM bonds/syndicated loans will come due through end of 2021,” according to the report.
Meanwhile, the total debt of the mature markets reached $179.5 trn during the 2Q of 2019, compared to $176.8 trn in the same period last year. ■
Under an intense surge of arctic air, Friday morning will begin with the coldest temperatures so far this season across much of the central and eastern U.S. with blustery conditions and a piercing wind chill.