Egypt is targeting an economic growth rate of between 5.2% and 5.4% during the upcoming fiscal year, relying on private sector empowerment, an improved investment environment, and the economy’s capacity to create jobs, the minister of planning and economic development said.

 

Minister Ahmed Rostom announced the targets during a meeting with representatives from S&P Global Ratings and other international institutions. The discussions, held as part of the periodic review of Egypt’s credit rating, covered the latest developments in the country’s economic performance, financial results, and efforts to foster a competitive investment climate.

 

Reviewing recent economic indicators, Rostom stated that gross domestic product (GDP) grew by 5.1% during the fiscal year (FY) 2025/26, up from 4.4% in the previous year. He attributed this to a tangible recovery in high value-added sectors, led primarily by manufacturing and telecommunications and information technology.

 

The achieved growth results demonstrate the capacity of the productive and service sectors to support economic activity and solidify the diversification of national income sources, Rostom said. He added that this enhances the transition towards raising productivity efficiency and the quality of growth.

 

Addressing the impact of fiscal and monetary policies, the minister noted their success in restricting economic pressures. The inflation rate continued its downward trajectory, reaching 12.7% in August 2026.

 

Simultaneously, the labour market showed improvement, with the unemployment rate falling to 5.8% in the second quarter of 2026. Rostom said this reflects the economy’s increased capacity to generate new and sustainable employment opportunities.

 

Regarding current geopolitical and regional developments, Rostom emphasised that the Egyptian economy has demonstrated a degree of flexibility and the ability to absorb external shocks. He credited this resilience to the continued implementation of structural reform programmes and increased investment competitiveness.

 

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