Egypt targets 5.2%-5.4% growth next fiscal year as S&P reviews credit rating

Egypt’s economy grew 5.1 per cent in the 2025/26 fiscal year and is targeting 5.2-5.4 per cent growth next year as it shifts from economic stabilisation to sustainable growth, Planning and Economic Development Minister Ahmed Rostom said on Saturday.

As part of Standard & Poor’s routine review of Egypt’s credit rating, Rostom met with representatives from the agency and other international organisations.

He said economic growth accelerated from 4.4 per cent in the previous fiscal year, driven by a recovery in manufacturing and information and communications technology.

“The Egyptian economy is moving rapidly from a phase of restoring economic stability to one of sustainable growth,” Rostom said.

Recent growth reflected the ability of the productive and service sectors to sustain economic activity and diversify sources of growth, while improving productivity and the quality of economic expansion, he said.

The government’s growth target for the next fiscal year is based on empowering the private sector, improving the investment climate, and strengthening the economy’s ability to create jobs, Rostom said.

Inflation fell to 12.7 per cent in August 2026, while unemployment declined to 5.8 per cent in the second quarter, Rostom said, pointing to improving labour-market conditions and stronger job creation.

Egypt has shown resilience in weathering external shocks amid geopolitical and regional developments, supported by continued structural reforms and efforts to improve investment competitiveness, he said.

The meeting also reviewed Egypt’s latest economic performance, fiscal results, private-sector participation and efforts to create a more competitive investment environment as part of S&P’s periodic credit-rating review.