The Ministry of Finance affirmed that the Egyptian economy has once again demonstrated its resilience and ability to adapt to and absorb shocks amid regional turmoil.

In a statement issued following Fitch Ratings’ affirmation of Egypt’s ‘B’ credit rating with a stable outlook, the ministry said that the consistent, proactive policies implemented have contributed to positive economic results. It explained that economic growth reached 5.1% in fiscal year 2025/2026, supported by expansion in manufacturing and information and communications technology (ICT).

The statement added that the primary surplus reached 4.9% of gross domestic product (GDP), while the overall budget deficit narrowed to 5.8% of GDP in fiscal year 2025/2026. It noted that tax revenues increased by 27% without imposing any new burdens, following the start of implementation of tax facilitation packages.

The Ministry of Finance reaffirmed its commitment to pursuing balanced fiscal policies aimed at stimulating economic activity while maintaining stability and fiscal discipline. It stressed that it would intensify efforts with its partners across the government and private sector to promote growth driven by production and exports.

The ministry stated: “We will continue to work vigorously to empower the private sector, which has demonstrated its capacity for growth, with its share of total investment rising to around 65%.”

The ministry explained that high debt-servicing costs remain the biggest challenge amid elevated interest rates, emphasizing that the debt-servicing bill would decline significantly as interest rates fall.

The statement pointed out that the medium-term debt management strategy aims to extend debt maturities and diversify financing instruments and the investor base to reduce refinancing risks. It further explained that maintaining substantial primary budget surpluses would help place the debt-to-GDP ratio and debt-servicing costs on a sustainable downward trajectory.