Egypt Targets Up to 5.4% Economic Growth as S&P Reviews Sovereign Credit Rating
Egypt is targeting economic growth of between 5.2% and 5.4% in the coming fiscal year as the country continues its transition toward sustainable growth, Planning and Economic Development Minister Ahmed Rostom said.
Rostom held talks with representatives of international credit rating agency Standard & Poor’s (S&P) and several international institutions as part of the agency’s periodic review of Egypt’s sovereign credit rating.
During the meeting, the minister highlighted recent improvements in Egypt’s economic performance, noting that real GDP growth reached 5.1% in fiscal year 2025/2026, up from 4.4% a year earlier.
The stronger performance was supported by higher-value-added sectors, particularly manufacturing and telecommunications and information technology, which have emerged as key drivers of economic activity.
Rostom also pointed to improvements in key macroeconomic indicators. Annual inflation declined to 12.7% in August 2026, while the unemployment rate fell to 5.8% in the second quarter of 2026.
The minister said the latest figures reflect the economy’s improving ability to generate sustainable employment and maintain productive activity amid ongoing regional and geopolitical challenges.
He added that Egypt is continuing to implement structural reforms aimed at strengthening competitiveness, improving the investment climate and increasing the private sector’s contribution to economic growth.
The government expects the private sector, investment reforms and higher productivity to remain central to achieving stronger and more sustainable growth in the coming period.