Egypt is targeting an economic growth rate of between 5.2% and 5.4% and total investments of EGP 3.7trn for the fiscal year (FY) 2026/27, with private investments accounting for the majority of the planned expenditure, the Minister of Planning and Economic Development said.

Presenting the FY 2026/27 economic and social development plan and the FY 2029/30 medium-term framework to the House of Representatives’ Plan and Budget Committee, Ahmed Rostom detailed the government’s strategy to boost the real economy and mitigate geopolitical risks. The parliamentary committee is led by Chairperson Mohamed Soliman.

The minister noted that economic growth for the first half of the current fiscal year reached 5.3%, demonstrating the economy’s resilience following recent reforms. Looking ahead, the government is focusing on increasing the contribution of real economy sectors to boost production, provide productive employment opportunities, and increase exports. Five real economy sectors are expected to contribute 64% of the targeted growth in FY 2026/27. Manufacturing leads with a 29% contribution, followed by wholesale and retail trade at 11.3%, tourism at 9.3%, construction at 7.2%, and agriculture at 7%. The government aims to increase the overall growth rate to 6.8% by the end of the medium-term plan in FY 2029/30.

Of the EGP 3.7trn in total investments planned for the upcoming fiscal year, EGP 2.2trn, or 59%, is allocated to private investments. Public investments will account for EGP 1.5trn, or 41%. Rostom stated that the plan targets a domestic investment rate of 17% of Gross Domestic Product, emphasising the ongoing governance of public investments and the rationalisation of expenditure to provide the private sector with more space to enhance its developmental role.

The medium-term plan targets a continuous increase in the investment-to-GDP ratio, reaching approximately 20% by the end of FY 2029/30. The share of private investments is also projected to rise to 64% by the end of this period, compared to the 59% targeted for FY 2026/27.

Aligning with directives from President Abdel Fattah El-Sisi to improve the economic situation and living standards, the plan prioritises the first phase of the “Decent Life” initiative and the Comprehensive Health Insurance project. The plan treats human development as an indispensable priority, increasing allocations for the health and population sector by 25% to ensure decent services and expedite the expansion of the health insurance scheme. Additionally, funding for the Ministry of Social Solidarity and its various programmes will rise by 57%, while allocations for both education and higher education will each see an 11% increase. Rostom reiterated the ministry’s commitment to supporting “Egypt Vision 2030” and its strategic targets through continuous communication with parliament.

Addressing regional tensions, Rostom warned of negative impacts on global economies due to supply chain disruptions and rising petroleum and food prices. He outlined a government “hedging” strategy to bolster the strategic reserve of basic commodities and secure the state’s petroleum needs, alongside a rapid shift towards relying on renewable energy. The government is closely monitoring the impact of these crises on growth rates and will review its targets proactively whenever necessary, he added.

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