Monday, 25 May 2026
Egypt’s economy shows strong improvement, private sector leads growth
Egypt’s economy is experiencing significant improvement, and the outlook ahead is even more promising, according to a recent statement by Ahmed Kouchouk, Egypt’s Minister of Finance.
Speaking on the country’s economic progress, the Minister highlighted several positive developments, especially the increasing role of the private sector, which accounted for 60% of total investments over the past ten months.
Despite facing challenges such as reduced revenues from the Suez Canal and the energy sector, Egypt achieved its highest primary budget surplus since 2005, reaching 3.1% between July and May. The government remains committed to continuing its ambitious economic reform program, and is determined to meet its financial goals, even after sustaining a loss of 110 billion Egyptian pounds in Suez Canal revenues and providing an additional 150 billion pounds to support the energy sector.
Tax revenues saw an impressive growth of 38%—the highest in years—without placing any new burdens on citizens. Robust performance was also reported in non-oil manufacturing, tourism, communications, and information technology sectors during the first half of the year.
The Minister noted increased government spending in key social and development areas:
- Health: average spending rose by 27%
- Education: up by 23%
- Subsidized food commodities: 95 billion pounds, up 37%
- Social welfare programs ("Takaful & Karama"): 30 billion pounds, up 24%
- State-funded medical treatments: 11 billion pounds, up 35%
- Industrial production support: 8 billion pounds, a 128% increase
- Export support allocations: around 15 billion pounds
Another positive sign is the reduction in Egypt’s external public debt by $2 billion over the last ten months. The return of foreign investor confidence has contributed to lengthening the average maturity of government debt instruments to 1.8 years by December 2024. Additionally, remittances from Egyptians living abroad increased by an impressive 82.7%, reaching $26.4 billion between July and March.