Arab Finance: Egypt’s government debt rose to 79.7% of gross domestic product (GDP) in the second quarter (Q2) of 2026, from 78.3% in the same period a year earlier, according to the Institute of International Finance’s (IIF) latest Global Debt Monitor.

The figure exceeded the average government debt-to-GDP ratio of 76.8% across emerging markets and 62.2% in Africa.

The increase comes as the government pursues a plan to cut public debt relative to GDP. Prime Minister Mostafa Madbouly said at a press conference in early September that the ratio had fallen from more than 96% three years ago to about 82% now, as the government aims to reduce it to 78% by the end of the fiscal year.

Madbouly also added that the government plans to bring the ratio down further by 2030, with continued economic growth and a larger GDP central to that effort.

The IIF data also showed that debt held by Egypt's non-financial corporates rose to 19.7% of GDP in Q2 2026, from 19.5%in Q3 2025. That remained below the emerging-market average of 89.1%.

Meanwhile, Egyptian household debt increased to 7.4% of GDP from 7.2% over the same period, compared with an emerging-market average of 40.4%.

The IIF also listed Egypt among emerging markets that issued euro-denominated sovereign bonds in 2026, amid record activity in emerging-market sovereign debt issuance in the currency during the year.