Egypt records 5.3% growth in first half of current fiscal year

CAIRO - 15 April 2026: Egypt’s economy continued its strong recovery in the first half of the current fiscal year, posting growth of 5.3 percent, supported by increased private sector investment, Finance Minister Ahmed Kouchouk said during an open discussion with international investors organized by Jefferies International and Société Générale on the sidelines of the IMF and World Bank Spring Meetings in Washington.

Kouchouk said key external inflow indicators also showed notable improvement, including tourism, non-oil exports, remittances from Egyptians working abroad, and foreign direct investment.

He added that Egypt recorded a primary surplus equivalent to 3.5 percent of GDP between July and March, driven by government efforts to strengthen domestic revenue collection.

According to the minister, tax revenues rose by 29 percent during the same period, supported by growing confidence within the business community and stronger private sector activity.

He also said the overall budget deficit narrowed to 5.2 percent of GDP in the July-March period, compared with 6 percent in the previous fiscal year.

Kouchouk noted that external debt owed by budget sector entities declined by around $4 billion in June 2025 compared with 2023.

He added that Egypt’s debt-to-GDP ratio fell by around 13 percent over the past two fiscal years, while the same ratio rose by about 6 percent across emerging markets.

The minister said recent updates by credit rating agencies reflect a stable and positive assessment of the Egyptian economy’s performance.

He also stressed that full coordination is in place among all government bodies to ensure quick decision-making and maintain strong communication with markets and investors.

Kouchouk said Egypt’s fiscal policy is based on four medium-term priorities aimed at preserving fiscal discipline, lowering debt levels, and improving the competitiveness of the economy.

He added that the government is seeking to balance fiscal discipline with continued economic support and better-targeted social protection programs.