Egypt's economy has shown notable improvements in key financial and economic indicators during the 2025/2026 fiscal year. These developments coincide with ongoing efforts to consolidate public finances, enhance the role of the private sector, and increase foreign currency inflows. According to recent data, the country's external debt has decreased by $6.5 billion over three years, reaching $76.15 billion in June 2026.
The ratio of public debt to GDP has also declined, from 95.7% in June 2023 to approximately 82.5% in June 2025. The government has set a target of achieving a primary surplus of 5% of GDP in the 2026/2027 budget. Additionally, the economic growth rate was recorded at around 5% during the third quarter of the 2025/2026 fiscal year, compared to 4.8% in the same period of the previous year. The private sector has been driving growth, with investments amounting to 637 billion pounds in the third quarter, up from 521 billion pounds in the same period last year.
The industrial sector has been a significant contributor to growth, with the manufacturing industry leading the way. The sector's investments increased by 116 billion pounds, highlighting its crucial role in the economy. In terms of financing, the private sector has seen a substantial increase in credit, with a total of 3.3 trillion pounds in credit granted to private businesses by the end of 2025. This marks the eighth consecutive quarter of expansion in credit to the private sector.
Egypt has also seen a notable increase in non-oil exports, which rose to $18.3 billion during the first half of the 2025/2026 fiscal year. This represents a $2.6 billion increase compared to the same period in the previous year. Furthermore, foreign direct investment has increased, with net inflows reaching $9.3 billion, up from $6 billion. The country's international reserves have also grown, reaching $51.4 billion during the first half of the 2025/2026 fiscal year, up from $47.8 billion in March 2025.
Remittances from Egyptians working abroad have increased significantly, reaching $34.9 billion during the first nine months of the 2025/2026 fiscal year. This marks a substantial rise from $26.4 billion in the same period last year. Tourism revenues have also seen an increase, reaching $14.4 billion, up from $12.5 billion. These developments have contributed to a more stable economic environment.
The oil and gas sector has also seen significant progress, with $6.1 billion in payments made to international investment companies operating in Egypt. This move is part of efforts to support the investment climate in the sector. On the inflation front, the annual core inflation rate has declined to 14.3% in June 2026, down from 34.4% during the 2023/2024 fiscal year.
Overall, Egypt's economic indicators suggest a positive trend, with improvements in debt, growth, and investment. The government's efforts to enhance the business environment and attract foreign investment appear to be yielding results. Key initiatives, such as increasing the role of the private sector and boosting foreign currency inflows, are expected to continue driving growth and stability in the economy.
Key points
- Egypt's external debt has decreased by $6.5 billion over three years.
- The country's economic growth rate was recorded at around 5% during the third quarter of the 2025/2026 fiscal year.
- Remittances from Egyptians working abroad have increased significantly, reaching $34.9 billion during the first nine months of the 2025/2026 fiscal year.
