Egypt Targets 5.4% Economic Growth, Approves 2026/27 Budget

The Egyptian government has approved its economic and social development plan for fiscal year 2026-2027, alongside the medium-term framework through 2029/30, as presented by Ahmed Rostom, Minister of Planning and Economic Development. 

The plan aims to achieve a 5.4% GDP growth rate in 2026-2027, rising to 6.8% by 2029-2030, with five key sectors expected to contribute around 64% of this growth.

Investment Structure and Human Development Focus

Total investments for FY 2026-2027 are projected at EGP 3.8 trillion, divided between public investments of EGP 1.5 trillion (41%) and private investments of EGP 2.2 trillion (59%). Public investment allocations include government apparatus worth EGP 0.5 trillion (36%), public economic authorities worth EGP 0.75 trillion (47%), and public institutions worth EGP 0.25 trillion (17%).

Significant funding, approximately 48% of treasury allocations, will be directed to human development sectors, including education, healthcare, youth, and cultural services. The education sector alone will see 1,304 projects implemented.

The government also approved the state budget for 2026/27, linking allocations for 65 public economic authorities. Ahmed Kouchouk emphasized that the budget prioritizes citizens and investors, focusing on health, education, social protection, and support for production and exports.

Key fiscal priorities will support economic activity and partnerships with the private sector, balance fiscal discipline with growth incentives, and improves debt indicators to allow greater spending on essential services.

The budget targets a 27.6% increase in public revenues to EGP 4 trillion, alongside a 13.2% rise in expenditures to EGP 5.1 trillion, strengthening state financial resources. Social protection is allocated EGP 832.3 billion (up 12% year-on-year) to support vulnerable groups.

Additionally, EGP 90 billion is earmarked for programs supporting economic activity, with incentive disbursements tied to measurable results to enhance production and exports. 

Moreover, the government aims for a primary surplus of EGP 1.2 trillion (5% of GDP) to reduce debt and increase social spending, while lowering the overall deficit by 1.2% of GDP to 4.9% by June 2027. 

Finally, the total public debt is targeted to fall to 78% of GDP by June 2027, reinforcing fiscal sustainability and economic stability.