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Arab Finance: Egypt recorded a primary surplus of 3.5% of gross domestic product (GDP) during the first nine months of the current fiscal year (FY) 2025/2026, Minister of Finance Ahmed Kouchouk stated.
Speaking at a meeting organized by the Egyptian-British Business Association in London, Kouchouk said the overall budget deficit narrowed to 5.2%, highlighting signs of the economy's resilience amid regional and global challenges.
He noted that the government is continuing to implement its strategy to reduce public debt and improve the financing structure, while targeting an annual reduction of between $1 billion and $2 billion in the external debt of budget entities.
According to Kouchouk, the economic reforms undertaken by the government have helped strengthen investor confidence, contributing to a 73% increase in private investment during the last FY and growth of nearly 40% during the first half (H1) of the current FY.
The minister said the government is focused on supporting productive and export-oriented sectors through investment, tax, and customs incentives aimed at enhancing the competitiveness of the Egyptian economy and increasing private sector participation.
He added that non-petroleum industries, the technology sector, and financial services are witnessing significant expansion, while the private sector's contribution to total investments has risen to 59%.
Kouchouk also highlighted improvements in Egypt's external position, noting that net international reserves reached $53 billion at the end of April 2026, alongside a continued decline in inflation rates within what he described as a more cohesive and stable economy.
The tourism sector continued to deliver positive results, with revenues reaching $10.2 billion during H1 of the current FY, marking a 22% YoY increase, he said. Kouchouk added that Egypt has promising opportunities to attract additional foreign direct investment across key sectors.
He further noted that the government has reduced outstanding payments owed to foreign partners in the petroleum sector by more than 67% within two months and is working to complete the settlement of these dues by the end of June.
