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.
In addition to the unemployment rate and inflation, Madbouly discussed Egypt's foreign exchange resources. He reported that the country's foreign exchange resources had increased significantly from January to August, with a 32% rise in remittances from Egyptians abroad, reaching approximately $35 billion. The prime minister also noted that Suez Canal revenues have started to recover and that tourist activity has continued to increase.
The prime minister highlighted the growth in foreign direct investment in Egypt, particularly in the industrial sector. He stated that foreign companies are increasingly establishing new factories or expanding existing ones in Egypt, reflecting the government's efforts to improve the investment climate. Madbouly emphasized that this trend aligns with the state's goal of increasing productive investments, creating job opportunities, and boosting exports.
Regarding public finances, Madbouly reported that Egypt achieved a primary surplus of 4.9% of GDP in the 2025/2026 fiscal year. He attributed this success to a package of measures implemented by the government to enhance resources and improve spending efficiency. The prime minister also noted that state resources grew by 32%, while tax revenues increased by 27% 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 public debt ratio decreased from 96% of GDP two years ago to 81.8% at the end of the 2025/2026 fiscal year. The prime minister aims to further reduce this ratio to 75% of GDP, as directed by President El-Sisi.
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 ratio decreased from 96% to 81.8% of GDP over the past two years.
