The Egyptian government recently revealed that the final balance of the general state budget for the 2023/2024 fiscal year recorded a “significant” primary surplus for the first time in several years. This major economic announcement highlights the country’s financial progress and strategic investments, underscoring its economic stability and growth.
Egyptian Finance Minister Ahmed Kouchouk said that the primary surplus in the final balance of the general state budget for the 2023/2024 fiscal year reached EGP 859 billion, largely thanks to the Ras al-Hekma agreement. This agreement allowed Egypt to achieve a very high primary surplus and rank among the countries with the highest primary surpluses.
During a meeting of the Planning and Budget Committee of the House of Representatives, the Egyptian minister stressed that the country expected to achieve a primary surplus of about 2.5 percent of GDP, or about 296 billion Egyptian pounds. However, the primary surplus achieved in the final budget balance amounted to 350 billion pounds without the Ras al-Hekma agreement, and reached 859.6 billion pounds after the inclusion of this agreement, representing 6.1 percent of GDP.
It is important to note that the total deficit in the final budget balance amounted to 504 billion pounds after the Ras al-Hekma agreement, with a total deficit rate of 3.6 percent including this agreement, compared to about seven percent without the Ras al-Hekma agreement.
The agreement to develop the city of Ras al-Hekma on the northern coast in partnership with the United Arab Emirates, signed in February, has been described as “the largest foreign direct investment agreement in the country’s history.” With a foreign direct investment of $35 billion, this agreement contributes significantly to the Egyptian economy and strengthens the country’s international relations.
In conclusion, Egypt demonstrates strong economic momentum thanks to strategic agreements such as Ras al-Hekma that stimulate growth, promote job creation and strengthen the country’s position on the international stage. These positive financial achievements pave the way for a prosperous future for Egypt and demonstrate its ability to seize opportunities to develop economically.