Egypt's economy has demonstrated resilience, with a growth rate of 5.1% in the 2025/2026 fiscal year, driven by increases in the manufacturing and communications sectors. The country's finance ministry reported that the primary surplus reached 4.9% of the GDP, and the overall budget deficit decreased to 5.8%. Additionally, tax revenues rose by 27% without imposing new burdens, as part of the government's efforts to stimulate economic growth.
The Egyptian government has taken steps to enhance its economic prospects, with a focus on digital transformation. The Ministry of Communications and Information Technology and the Ministry of Labor have signed a memorandum of understanding to collaborate on digital development and capacity-building initiatives. This partnership aims to promote digital culture and develop the necessary skills to keep pace with labor market requirements and the digital economy.
The global economic landscape has influenced Egypt's economic trends. Most Gulf stock markets closed lower on Thursday, with the Saudi index experiencing its largest daily decline since March. The Qatari index also dropped to its lowest level since the pandemic-induced sell-off in June 2020. Meanwhile, the Egyptian stock exchange suspended trading in celebration of the October 6 victory over the Israeli forces.
The World Trade Organization (WTO) has revised its forecast for global trade in services, citing the impact of regional conflicts on transportation and travel. However, the organization has raised its projections for global goods trade, expecting a 3.9% growth in 2026 and 4.1% in 2027. The WTO also predicts that the global economy will grow by 2.6% in 2026.
Egypt's iron and steel industry has experienced significant price increases, with iron prices rising by around 1000 pounds per ton in October. This surge has been attributed to changes in production costs. Major companies, including Egypt's largest steel producer, have raised their prices. The price of iron from Egypt's largest steel producer, reached 40,850 pounds per ton, inclusive of 14% value-added tax.
Meat prices in Egypt have also seen a notable increase, particularly in the price of camel meat, which has risen to between 380 and 400 pounds per kilogram. According to industry experts, this increase is due to a shortage of camels in the market. The rise in camel meat prices has had a ripple effect on the overall meat market, including prices of locally produced and imported beef.
Amidst these economic developments, rating agency Fitch has affirmed Egypt's credit rating at B with a stable outlook. The agency praised Egypt's transportation sector, citing its strategic location and ongoing investments in infrastructure development. These factors are expected to support Egypt's growth and reinforce its position as a regional logistics hub.
Key points
- Egypt's economy grows by 5.1% in 2025/2026 fiscal year
- Iron prices rise by 1000 pounds per ton in October
- Meat prices increase due to shortage of camels in the market
