Egypt's Economy Expected to Grow 5% Despite Regional Challenges, Says PM

Egypt's economy is on track to achieve approximately 5% growth during the current fiscal year, demonstrating resilience in the face of regional geopolitical turmoil and global economic uncertainty, Prime Minister Mostafa Madbouly said on Wednesday.

Speaking during a press conference, Madbouly expressed confidence in the country's economic performance, emphasizing that Egypt has successfully navigated a series of external shocks while maintaining growth momentum across key sectors.

"The Egyptian economy has proven its resilience despite the geopolitical tensions affecting the region," the prime minister said, highlighting the government's efforts to preserve macroeconomic stability and support investment activity.

Madbouly noted that the petroleum sector has witnessed a significant positive turnaround for the first time in recent years, driven largely by the government's progress in settling outstanding obligations to foreign energy partners. The move has helped restore investor confidence and encouraged renewed activity in the country's oil and gas industry.

The prime minister's remarks come as Egypt continues to pursue economic reforms aimed at boosting private-sector participation, attracting foreign direct investment, and strengthening strategic industries.

Madbouly also acknowledged the broader impact of the recent U.S.-Iran conflict, describing it as a crisis that affected economies around the world through disruptions to energy markets, trade flows, and investor sentiment.

However, he stressed that Egypt had managed to withstand the resulting economic pressures and mitigate their impact through proactive policy measures and coordinated government action.

"The U.S.-Iran war affected the entire world, but the Egyptian economy was able to confront the challenges arising from this conflict," Madbouly said.

The growth forecast reflects improving economic conditions across several sectors, including energy, tourism, manufacturing, and infrastructure, even as policymakers remain cautious about ongoing risks stemming from regional instability and fluctuations in global commodity markets.

While challenges remain, including inflationary pressures and external economic headwinds, government officials maintain that Egypt's diversified economic base and continued investment in strategic sectors will support sustainable growth in the years ahead.