Infrastructure Growth Exceeds Production in the Middle East

The Egyptian government faces a staggering $161.2 billion in international debt, with nearly half of its budget allocated for debt payments, significantly impacting its economic stability. Despite extensive infrastructure investments since 2014, these projects have not generated the necessary economic returns, leading to a reliance on “debt-for-equity swaps” to meet fiscal obligations. This approach has resulted in foreign ownership of profitable assets without creating new job opportunities or economic growth. Amidst rising prices and declining revenues, the situation echoes broader global financial challenges, drawing parallels with countries like Sri Lanka.

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