Monday, 25 May 2026
Egyptian Parliament (File Photo)
Egypt approves ambitious growth plan for 2025/26
Egypt’s parliament has given the green light to the government’s economic and social development strategy for the 2025/26 fiscal year, setting an ambitious target of 4.5% economic growth despite ongoing volatility in the region.
Unveiled to the House of Representatives by Planning Minister Rania Al-Mashat, the plan seeks to spark a strong rebound from the modest 2.4% growth achieved in fiscal year 2023/24. The government reports that initial data from the first nine months of 2024/25 already suggest an uptick in growth.
According to the new blueprint, public investment is budgeted at EGP 1.16 trillion, up from an estimated EGP 1 trillion this fiscal year. The government noted that this figure underscores a commitment to smarter public spending, easing the public debt load, and creating more opportunities for private sector investment in development.
Private sector contributions are forecast to rise to around EGP 1.94 trillion, accounting for an anticipated 63% of all investments, with public sector investment making up the remaining 37%. The plan also emphasizes channeling public funds into projects that are nearing completion.
Following the parliamentary vote, Al-Mashat highlighted that the plan was crafted under “delicate circumstances” that have become “more complex due to evolving regional dynamics.”
She stressed that this uncertainty makes a “flexible planning approach and ongoing monitoring” essential to stay on track with the plan’s objectives. The government will keep a close watch on developments and stands ready to adjust the targets if conditions deteriorate further.
Al-Mashat also expressed gratitude for parliament’s engagement, praising its “serious debates and insightful feedback” on the proposal.