Arab News: Egypt is targeting gross domestic product growth of 5.4 percent, inflation stabilization, and a primary surplus of 1.2 trillion Egyptian pounds ($22.7 billion) during the 2026/27 fiscal year, a top official revealed.
Speaking during a meeting with President Abdel-Fattah El-Sisi to review the priorities and parameters of fiscal policy for the 2026/27 budget, Finance Minister Ahmed Kouchouk stated that the government aims to allocate 90 billion pounds to programs supporting economic activity and extend financial support to the energy sector, according to a presidential statement.
This follows October’s rating actions, when S&P Global upgraded Egypt to “B” from “B-,” and Fitch affirmed its “B” rating, citing reform progress and macroeconomic stability.
The targets also reflect September data from Egypt’s Ministry of Planning, Economic Development and International Cooperation, showing the economy grew 4.4 percent in fiscal year 2024/25, supported by a strong fourth quarter when GDP growth hit a three-year high of 5 percent.
The newly released statement said: “This policy includes the establishment of a new partnership with the business community to bolster confidence, improve services, and ensure clarity of vision. This is in addition to the implementation of targeted tax and customs facilitations, and the expansion of the tax base by increasing tax compliance, without imposing additional or significant burdens on citizens or the business community.”
Kouchouk noted that the priorities and parameters of the fiscal policy encompass the implementation of a balanced fiscal policy that fosters growth and enhances the competitiveness of the Egyptian economy, while maintaining fiscal discipline.
The minister also added that there will be a significant improvement in all debt service indicators, coupled with a sustained reduction in the debt-to-GDP ratio.
During the meeting, he further highlighted that fiscal policy priorities also focus on significantly boosting spending on health and education, increasing teachers’ salaries, and ensuring real wage growth for public sector employees based on performance and above inflation levels.
The discussion also examined targets for economic growth, the primary surplus, government spending, and revenue streams, while reviewing efforts to achieve fiscal balance and strengthen economic performance, particularly amid escalating regional challenges and their economic impact.
In this context, the finance minister stressed that the government remains committed to its reform path to maintain financial and economic stability and support private sector expansion.
He also reaffirmed efforts to sustain economic activity, production, manufacturing and exports through balanced, investment-friendly fiscal policies, highlighting ongoing tax, customs and real estate measures aimed at easing pressures on citizens and investors.
President El-Sisi stressed the importance of continuing comprehensive institutional reforms to maintain fiscal discipline and strong governance, including rationalizing public spending, boosting revenues and reducing public debt to strengthen the economy’s resilience.
He also emphasized the need for the government to sustain efforts to attract both domestic and foreign investment, while engaging closely with global investors to better communicate the country’s economic measures aimed at mitigating the impact of regional challenges.
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