Egypt Maintains B/B Credit Rating as Finance Ministry Prioritizes Debt Reduction and Investment Growth
Egypt's Ministry of Finance has outlined its priorities for the next phase of economic policy, focusing on attracting investment, sustaining economic growth, creating jobs and reducing public debt. The announcement came after Standard & Poor's maintained Egypt's credit rating at B/B with a stable outlook.
The ministry said its fiscal strategy aims to provide sufficient flexibility to support economic activity while preserving fiscal discipline and continuing efforts to bring down government debt. Other priorities include increasing foreign direct investment, diversifying the economy's growth drivers and expanding exports of both goods and services.
Economic Reforms and Growth Prospects
According to the ministry, consistent and forward-looking economic policies are helping Egypt strengthen its capacity to manage the effects of regional crises. It added that the stable outlook reflects a balance between the country's growth prospects and the continued implementation of economic reforms over the medium term.
The statement identified manufacturing, telecommunications and tourism as key contributors to economic activity, reporting that Egypt's economy grew by 5.1% in the 2025/2026 fiscal year.
Private Investment and Fiscal Performance
The ministry reported that the private sector accounts for 65% of total investments and is recording strong growth. It also pointed to expectations of further economic expansion as the government continues to introduce incentives, simplify procedures and improve predictability for businesses.
On public finances, the ministry said the primary surplus reached 4.9% of gross domestic product (GDP), while the overall budget deficit fell to 5.8% of GDP in the previous fiscal year, despite ongoing challenges.
Tax revenues also increased to 13% of GDP during the same period, according to the ministry, which attributed the improvement to tax facilitation measures introduced without additional burdens.
Debt Reduction Remains a Key Fiscal Objective
The ministry acknowledged that high debt-servicing costs and financing requirements continue to constrain public finances. However, it expects conditions to improve as interest rates decline.
It also stated that exceptional government revenues are being allocated directly to accelerate the reduction of public debt relative to GDP.
Egypt's targets include lowering public debt to 78% of GDP by June 2027 and reducing external debt by approximately $1 billion to $2 billion annually.
Targeted Support for Vulnerable Groups
Alongside fiscal consolidation, the ministry confirmed that social protection programs will continue, with assistance increasingly directed toward eligible beneficiaries and the most vulnerable households.
The approach is intended to maintain support for those in need while advancing the government's broader fiscal reform and debt-reduction objectives.