Ministry of Finance: Egyptian Economy Again Proves Its Ability to Adapt and Absorb Shocks

Cairo - Nadeh Imam: The Ministry of Finance confirmed that the Egyptian economy has once again demonstrated its ability to adapt and absorb shocks amid regional turmoil. This came in a statement by the ministry following Fitch Ratings’ decision to maintain Egypt’s credit rating at B with a stable outlook. The statement noted that consistent, proactive policies have contributed to strong economic results, highlighting that growth reached 5.1% during the 2025/2026 fiscal year, supported by increases in manufacturing, telecommunications, and information technology sectors.

The statement added that the primary surplus reached 4.9% of GDP, while the overall budget deficit declined to 5.8% in the 2025/2026 fiscal year. It clarified that tax revenues rose by 27% without imposing new burdens, coinciding with the implementation of tax incentive packages.

The Ministry of Finance reaffirmed its commitment to implementing balanced fiscal policies to stimulate economic activity while maintaining financial stability and discipline. It emphasized that it will make greater efforts in collaboration with government and private sector partners to foster production- and export-led growth.

The ministry stated, “We will continue to work vigorously to empower the private sector, which has proven its capacity for growth by increasing its investments by approximately 65%.”

The ministry pointed out that rising debt service costs remain the biggest challenge amid higher interest rates, but these costs will decline sharply as rates fall.

The statement noted that the medium-term debt management strategy aims to extend maturity profiles, diversify instruments, and broaden the investor base to reduce refinancing risks. It further explained that sustained large primary surpluses in the budget help place the debt-to-GDP ratio and its service burden on a sustainable downward trajectory.