Egypt targeting 5.4pc GDP growth in 2026/27 budget

RIYADH, Mar 25 (Arab News): Egypt is targeting gross domestic product growth of 5.4 per cent, 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 per cent in fiscal year 2024/25, supported by a strong fourth quarter when GDP growth hit a three-year high of 5 per cent.

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."