Egypt Achieves 3.5% Primary Surplus as Budget Deficit Falls to 5.2%, Finance Minister Says

Egypt has maintained the momentum of its economic and fiscal reform programme, achieving a primary surplus of 3.5% of GDP while reducing the overall budget deficit to 5.2% during the period from July to March, according to Finance Minister Ahmed Kouchouk.

Speaking during an open discussion hosted by the Egyptian British Business Association in London, Kouchouk said Egypt has demonstrated its ability to withstand external shocks while preserving the pace of economic and financial reforms and maintaining economic stability.

The minister noted that the government is pursuing a comprehensive strategy to place public debt on a downward trajectory by improving the financing structure and continuing to reduce external debt owed by budget entities by between $1 billion and $2 billion annually.

Kouchouk said improving economic conditions has enabled Egypt to respond proactively to challenges linked to geopolitical tensions. He added that ongoing reforms contributed to a 73% increase in private-sector investment during the previous fiscal year, with growth approaching 40% in the first half of the current fiscal year.

He explained that Egypt’s economic vision is centred on boosting production, manufacturing and exports through additional investment, tax and customs incentives. According to the minister, both domestic and foreign private-sector investors have responded positively to the country's reform agenda.

The minister highlighted strong growth in non-oil industries, information and communications technology, and financial services, noting that the private sector now accounts for 59% of total investments.

Kouchouk also revealed that Egypt’s net international reserves reached $53 billion in April 2026, while inflation continues to decline within what he described as a coherent and stable economic framework.

Tourism remained one of the strongest-performing sectors, generating $10.3 billion in revenues during the first half of the current fiscal year, representing a 22% increase compared with the same period a year earlier.

He added that Egypt continues to offer growing opportunities across several strategic sectors with strong competitive advantages capable of attracting foreign direct investment.

The finance minister further announced that the government had reduced outstanding dues owed to foreign partners in the petroleum sector by more than 67% within two months, with plans to complete settlements by the end of June.