Egyptian Prime Minister Mostafa Madbouly announced that the country's unemployment rate reached a historic low of 5.8% last month. This significant achievement was revealed during a meeting with President Abdel Fattah El-Sisi and other high-ranking officials. The prime minister highlighted that this rate is the lowest ever recorded in Egypt's history. He also emphasized that the country's economy is growing, with various sectors contributing to this growth.
During the meeting, Madbouly discussed Egypt's economic performance, citing a 5.1% growth rate in the 2025/2026 fiscal year, which concluded on June 30. This growth rate is one of the highest in the Middle East and exceeded international institutions' expectations. The prime minister attributed this success to the growth of key sectors such as industry, agriculture, communications, tourism, and services. He stressed that Egypt's economy is no longer reliant solely on Suez Canal revenues or large investment projects.
The prime minister also addressed the issue of inflation, which has been a global concern. He stated that Egypt's inflation rate, as announced by the Ministry of Planning and Economic Development, stood at 12.7% last month, down from 23.2% in January 2025. Madbouly noted that while citizens may not yet feel the impact of this decrease, the government aims to sustain the downward trend in inflation to reflect on interest rates and production costs.
Madbouly highlighted the growth in Egypt's foreign exchange resources, citing a 32% increase in remittances from Egyptians abroad, reaching approximately $35 billion from January to August this year. He also noted a recovery in Suez Canal revenues and an increase in tourist traffic. These developments have enhanced the state's ability to cope with global economic shocks.
The prime minister discussed the structure of Egypt's economy, noting a shift in foreign investment towards industrial projects and activities. He welcomed this trend, seeing it as a positive development that aligns with the state's goals of increasing productive investments, creating job opportunities, and boosting exports.
On the fiscal front, Madbouly reported that Egypt achieved a primary surplus of 4.9% of GDP in the last fiscal year. He attributed this success to measures taken to enhance resources and improve spending efficiency. The prime minister also noted a 32% growth in state resources and a 27% increase in tax revenues, without raising tax rates.
Finally, Madbouly addressed the issue of public debt, stating that it has been on a downward trajectory. He reported that the debt-to-GDP ratio decreased from 96% two years ago to 81.8% at the end of the last fiscal year. The prime minister aims to further reduce this ratio to 75% in the coming years, in line with President El-Sisi's directives.
Key points
- Egypt's unemployment rate reached a historic low of 5.8% last month.
- The country's economy grew by 5.1% in the 2025/2026 fiscal year.
- Egypt's public debt has decreased from 96% to 81.8% of GDP over the past two years.
