The Egyptian Ministry of Finance has stated that the country's economy has once again demonstrated its capacity to adapt and absorb shocks in the face of regional disturbances. This assertion comes after Fitch Ratings maintained Egypt's rating at 'B' with a stable outlook. The ministry attributes this achievement to consistent and proactive policies that have yielded positive economic results. Egypt's economy has shown a growth rate of 5.1% in the 2025/2026 fiscal year, driven by significant increases in the manufacturing and communication sectors.
According to the Ministry of Finance, Egypt achieved a primary surplus of 4.9% of its GDP and reduced its overall budget deficit to 5.8% in the 2025/2026 fiscal year. The ministry also reported a 27% increase in tax revenues without imposing new burdens on citizens, made possible by the implementation of tax facilitation packages. These results indicate a positive trend in Egypt's economic management.
The Ministry of Finance emphasized its commitment to implementing balanced financial policies aimed at stimulating economic activity while maintaining financial stability and discipline. The ministry plans to collaborate closely with government partners and the private sector to encourage growth driven by production and exports. This approach is expected to further enhance Egypt's economic resilience.
The ministry highlighted its focus on empowering the private sector, which has demonstrated its growth potential by increasing investments to approximately 65%. This sector plays a crucial role in Egypt's economic development, and the government's support is expected to foster further growth. By creating a favorable business environment, the government aims to attract more investments.
Despite these positive developments, the Ministry of Finance acknowledged that high debt service costs remain a significant challenge due to increased interest rates. However, with expected declines in interest rates, the cost of debt servicing is anticipated to decrease substantially. This reduction will help alleviate some of the financial pressures on the government.
The Ministry of Finance outlined its strategy for managing medium-term debt, which includes extending the maturity of debt, diversifying financial instruments, and broadening the investor base. These measures aim to minimize refinancing risks and maintain a stable financial environment. The ministry's efforts to achieve substantial primary surpluses will contribute to reducing the debt-to-GDP ratio and associated servicing costs.
The Egyptian government's commitment to economic stability and growth is reflected in its policies and strategies. By prioritizing financial discipline and private sector growth, the government aims to ensure sustainable economic development. The recent affirmation of Egypt's credit rating by Fitch Ratings underscores the effectiveness of these policies and provides a positive outlook for the country's economic future.
Key points
- Egypt's economy achieved a growth rate of 5.1% in the 2025/2026 fiscal year.
- The primary surplus was 4.9% of GDP, and the overall budget deficit decreased to 5.8%.
- Tax revenues increased by 27% without imposing new taxes.
