Egypt Today: Egypt’s set a plan in FY2025/2026 aims to achieve an economic growth rate of around 4.5 percent, which is relatively high compared to the modest growth rate of 2.4 percent recorded in FY2023/2024.
Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, presented that during the plenary session of the Senate.
She added that the three sources of economic growth—final consumption, investment, and net export changes—are all expected to contribute positively and in a balanced way toward reaching the targeted growth rate of 4.5 percent.
Specifically, final consumption expenditure will contribute about 27 percent, investment spending about 37 percent, and net export changes approximately 36 percent.
Regarding investments, Al-Mashat mentioned that the new plan targets increasing total investments to nearly 3.5 trillion Egyptian pounds for the first time, compared to the expected investments of about 2.6 trillion pounds for 2024-2025 and the actual investments of 1.8 trillion pounds in 2023-2024.
She added, “The investment rate is also expected to continue rising, reaching 17.1 percent of GDP in 2025-2026, compared to lower rates in the previous two years (15 percent in 2024-2025 and 13 percent in 2023-2024).”
Al-Mashat pointed out that private investments are forecast to increase to approximately 1.94 trillion pounds, contributing around 63 percent of the total investments, while public investments will account for 37 percent. This reflects the state’s direction toward accelerating private sector growth efforts, while emphasizing good governance principles and competitive neutrality.
On public investment ceilings, the minister confirmed a commitment to maintaining a public investment cap of 1.16 trillion pounds in the 2025-2026 plan, compared to an expected 1 trillion pounds in 2024-2025. This approach aims to rationalize public spending, reduce the debt burden from servicing domestic and external public debt, and open broader opportunities for local private sector participation in development efforts.
https://www.egypttoday.com/Article/3/140243/Egypt-targets-4-5-growth-rate-in-FY2025-2026-PlanningMin
