The Ministry of Finance said it was facing the challenge of high debt-servicing costs and working tirelessly to reduce them at a faster pace over the coming period.
In a statement following Moody’s upgrade of Egypt’s credit rating to B3 with a positive outlook, the ministry said economic and fiscal reforms had helped stabilise public finances, strengthen reserves and accelerate economic activity. It noted that the government was continuing to improve the business environment, facilitate and streamline procedures, and promote competition to boost private investment, productivity and economic growth.
The ministry pointed out that the Egyptian economy had become more resilient and better able to withstand shocks while maintaining growth. It added that the government was working to raise productivity over the coming period, noting that strong economic growth had helped reduce government debt to 81.9% of gross domestic product (GDP) in June 2026.
The ministry also highlighted several other positive indicators, including an increase in net foreign exchange reserves to $57bn in September 2026. Tax revenues had also risen to 13% of GDP, an increase equivalent to 1.6 percentage points of GDP over two years, without imposing any additional burdens.
It added that the positive outlook reflected Moody’s expectations of stronger economic growth as reforms continued, alongside sustained fiscal discipline and support for production and exports. The ministry stressed that the government aimed to advance structural reforms and introduce further facilitation measures to strengthen private-sector confidence and achieve high and stable rates of economic growth.
The ministry stressed that fiscal policy remained balanced, with reforms continuing to safeguard financial stability while advancing growth and development. It explained that the government aimed to create additional and meaningful fiscal space to increase spending on health, education and more targeted social protection.
