Egypt’s economy expanded by 5.3 percent in the first half of the current fiscal year, Finance Minister Ahmed Kouchouk told international investors, pointing to stronger private sector activity and improving macroeconomic indicators.
Speaking on the sidelines of the Spring Meetings of the International Monetary Fund and the World Bank Group in Washington, Kouchouk said the government’s reform efforts were beginning to yield results despite global economic headwinds.
The minister made the remarks during an investor dialogue organised by Jefferies International and Société Générale, where he outlined Egypt’s response to recent economic challenges.
According to the finance ministry, Egypt’s fiscal position has improved alongside the growth rebound. The overall budget deficit narrowed to 5.2 percent of gross domestic product (GDP) in the July-to-March period, compared with 6 percent in the previous fiscal year.
During the same nine-month period, the country recorded a primary surplus of 3.5 percent of GDP, supported by stronger domestic revenue mobilisation.
Tax revenues rose by 29 percent year-on-year, reflecting increased private sector activity and growing confidence in the business environment, Kouchouk said.
The minister also pointed to progress in reducing debt vulnerabilities. External debt owed by budget entities declined by around $4 billion in June 2025 compared to 2023 levels, while the overall debt-to-GDP ratio has fallen by about 13 percentage points over the past two fiscal years.
This contrasts with an average increase of around 6 percent across emerging markets over the same period, he noted, adding that credit rating agencies have maintained a stable and positive outlook on Egypt’s economy.
Kouchouk highlighted gains across several key sectors, including tourism, non-oil exports, remittances from Egyptians abroad and foreign direct investment.
He said authorities had responded swiftly to recent global shocks, implementing coordinated policy measures across government institutions to stabilise the economy and maintain investor confidence.
“We are committed to the path of economic reform,” Kouchouk said, adding that Egypt would continue to support tourism, production, exports and entrepreneurship.
Looking ahead, the government’s medium-term fiscal strategy will focus on maintaining financial discipline, reducing debt levels and enhancing economic competitiveness, while preserving targeted social protection programmes.
The remarks come as policymakers gather in Washington to address rising global uncertainty, including tighter financial conditions and geopolitical tensions, which continue to weigh on emerging markets.
Despite these challenges, Egyptian officials say ongoing reforms and a stronger role for the private sector are helping to sustain growth and improve the country’s economic outlook.
