The Ministry of Finance said its fiscal policy priorities support and complement Egypt’s economic agenda to stimulate investment, promote growth and create jobs. It added that public finances were being managed flexibly to stimulate economic activity and drive growth while maintaining fiscal discipline and reducing debt.
In a statement following S&P Global Ratings’ decision to affirm Egypt’s credit ratings at B/B with a stable outlook, the ministry said efforts were underway to attract more foreign direct investment (FDI), diversify the structure of economic growth, and boost merchandise and services exports. It added that proactive and consistent policies were strengthening the Egyptian economy’s ability to withstand the repercussions of regional crises.
The ministry said the stable outlook reflected a balance between growth prospects and continued momentum in economic reforms over the medium term. Manufacturing, telecommunications and tourism were the main drivers of growth, which reached 5.1% in fiscal year 2025/2026.
It added that the private sector was recovering its activity and strengthening its role in the economy, accounting for 65% of investment and recording high growth rates. According to the ministry, S&P expects further growth as the government continues to introduce incentives, simplify procedures and enhance policy certainty.
The ministry said the primary surplus reached 4.9% of gross domestic product (GDP), while the overall budget deficit declined to 5.8% of GDP in the last fiscal year, despite the challenges facing the economy.
It added that tax facilitation measures had helped increase tax revenues to 13% of GDP in the last fiscal year without imposing additional burdens on taxpayers.
The ministry noted that rising debt-servicing costs and financing needs continued to pose challenges to public finances, adding that these pressures were expected to ease considerably as interest rates declined.
It explained that exceptional revenues were being channelled directly towards accelerating the government’s debt-reduction strategy and lowering public debt as a share of GDP.
The ministry said it aimed to reduce public debt to 78% of GDP by June 2027 and cut external debt by approximately $2.1bn annually.
It added that the government would continue implementing more targeted social protection programmes for eligible beneficiaries, particularly the most vulnerable groups.
