Egypt's Minister of Planning and Economic Development, Ahmed Rostom, has announced that the country is targeting an economic growth rate of 5.2-5.4% in the upcoming fiscal year. This target is based on the empowerment of the private sector, improvement of the investment environment, and the economy's capacity to create jobs. Rostom made this announcement during a meeting with representatives from S&P Global Ratings and other international institutions.
The discussions between Rostom and the international institutions were part of the periodic review of Egypt's credit rating. The meeting covered the latest developments in Egypt's economic performance, financial results, and efforts to foster a competitive investment climate. This review is crucial in assessing Egypt's economic stability and growth prospects.
According to Rostom, Egypt's gross domestic product (GDP) grew by 5.1% during the fiscal year 2025/26, up from 4.4% in the previous year. This growth is attributed to a tangible recovery in high value-added sectors, primarily driven by manufacturing and telecommunications and information technology. The growth in these sectors demonstrates the capacity of the productive and service sectors to support economic activity.
The achieved growth results also highlight the diversification of national income sources, which enhances the transition towards raising productivity efficiency and the quality of growth. Rostom emphasized that this growth is a positive indicator of the economy's resilience and its ability to adapt to changing circumstances.
The minister also addressed the impact of fiscal and monetary policies on the economy. He noted that these policies have been successful in restricting economic pressures. The inflation rate has continued its downward trajectory, reaching 12.7% in August 2026. Simultaneously, the labour market has shown improvement, with the unemployment rate falling to 5.8% in the second quarter of 2026.
Rostom attributed the improvement in the labour market to the economy's increased capacity to generate new and sustainable employment opportunities. He also emphasized that the Egyptian economy has demonstrated flexibility and the ability to absorb external shocks, thanks to the continued implementation of structural reform programmes and increased investment competitiveness.
The Egyptian economy's resilience in the face of geopolitical and regional developments is a positive indicator of its growth prospects. With a focus on private sector empowerment and improved investment climate, Egypt is poised to achieve its growth targets and maintain its dynamic growth rate in Africa.
Key points
- Egypt targets 5.2-5.4% economic growth in the upcoming fiscal year.
- The growth is driven by private sector empowerment and improved investment climate.
- Egypt's GDP grew by 5.1% during the fiscal year 2025/26.
