Egypt is targeting economic growth of 4.5 per cent in the 2025/2026 fiscal year, up from an estimated 2.4 per cent this year, as the government advances structural reforms and boosts investment in human development despite ongoing regional instability. Planning Minister Rania Al-Mashat told lawmakers on Tuesday that the government is monitoring regional and global developments closely and is prepared to respond to any shocks. A crisis committee led by Prime Minister Moustafa Madbouly is tracking the fallout from regional tensions to ensure readiness across key sectors. "The serious reforms the government is implementing strengthen economic resilience and represent the true guarantee of macroeconomic stability," Minister Al-Mashat said during a parliamentary session on the draft economic and social development plan for the next fiscal year. The government plans to allocate 327 billion Egyptian pounds — or 28 per cent of public investments — to human development sectors, including health and education. It will also complete the first phase of President Abdel-Fattah El-Sisi's Hayah Kareema (Decent Life) Initiative with 350 billion pounds in funding, and begin the second phase, focusing on water, sanitation, and health insurance projects. Minister Al-Mashat said initial data from the first nine months of the current fiscal year showed continued improvement in growth despite external pressures. International lenders, she added, still see promising opportunities for private sector financing. The government will continue to cap public investment spending as part of efforts to rationalise public finances and enhance spending oversight. Minister Al-Mashat pointed to the national structural reform programme as Egypt's main tool for navigating global economic headwinds. Finance Minister Ahmed Kouchouk also addressed lawmakers during the session, which reviewed the draft budget and development plan for the upcoming year. Attribution: Amwal Al Ghad English
