Egyptian Prime Minister Dr. Mostafa Madbouly recently addressed the nation's economic situation during a meeting with President Abdel Fattah El-Sisi. The meeting, held at the Strategic Command headquarters in the new capital, brought together key government officials, governors, and experts. Madbouly highlighted Egypt's economic growth, citing a 5.1% growth rate in the 2025/2026 fiscal year, one of the highest in the Middle East. This growth is attributed to the expansion of various sectors, including industry, agriculture, communications, tourism, and services.
Madbouly also discussed his recent participation in the United Nations General Assembly in New York City, where he engaged with global leaders. He noted that the discussions focused on the current global economic challenges, including slowed growth, high inflation, and increased debt. The Prime Minister emphasized that these issues are not limited to developing countries but also affect developed nations. In Egypt, the inflation rate has decreased significantly, from 23.2% in January 2025 to 12.7% last month. Madbouly attributed this decline to the government's efforts to control inflation and stabilize the economy.
The Prime Minister highlighted Egypt's unemployment rate, which reached a historic low of 5.8% last month. He emphasized the government's focus on creating high-quality job opportunities, particularly in sectors like communications, technology, and advanced industries. Madbouly also noted that the country's foreign exchange resources have increased, with a 32% rise in remittances from Egyptians abroad, reaching $35 billion from January to August this year.
Egypt's tourism sector is also showing signs of recovery, with increased movement and growth in foreign exchange resources. Madbouly mentioned that the Suez Canal's revenue has started to recover and return to positive levels. The government's efforts to improve the business climate and facilitate procedures for investors have led to a shift in foreign direct investment towards industrial projects and activities.
The Prime Minister discussed Egypt's public finance, highlighting a primary surplus of 4.9% of GDP in the last fiscal year. He attributed this achievement to measures taken to enhance resources and improve spending efficiency. Madbouly also noted a 27% increase in tax revenues without raising tax rates, reflecting the government's efforts to broaden the tax base and improve collection.
Regarding the national debt, Madbouly stated that it has been decreasing, from 96% of GDP two years ago to 81.8% at the end of the last fiscal year. The government aims to reduce this ratio to 78% in the current fiscal year and 75% in the long term, as directed by President El-Sisi. Madbouly emphasized the government's commitment to achieving this goal and gradually reducing the debt burden.
The Egyptian government is working to sustain economic growth and stability amid global challenges. Madbouly's address reflects the country's efforts to address economic issues and create a favorable business environment. The government's focus on investment, job creation, and infrastructure development is expected to contribute to Egypt's continued economic progress.
Key points
- Egypt's economy grew by 5.1% in the 2025/2026 fiscal year.
- The country's inflation rate decreased from 23.2% to 12.7% over the past year.
- Egypt's national debt decreased from 96% to 81.8% of GDP over the past two years.
