Sigma Capital

19-05-2025

Al-Mashat highlights strong economic growth outlook in EBRD report

Source: MIST

Business Today-


During the European Bank for Reconstruction and Development (EBRD) Annual Meetings held in the United Kingdom, Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation and Egypt’s Governor at the EBRD, emphasized the positive growth projections for Egypt’s economy as a testament to the success of ongoing economic and structural reforms.

The EBRD’s recently released a report forecasts Egypt’s GDP growth to reach 3.8% by the end of the current fiscal year and 4.4% in FY 2025/2026.

On a calendar year basis, growth is expected to be 4.0% in 2025 and 4.5% in 2026. The report highlights robust expansion in sectors such as manufacturing, transportation, and wholesale and retail trade, which contributed to a notable rise in growth to 3.9% year-on-year during the first half of FY 2025 (July–December 2024), up from 2.4% the previous year.

Al-Mashat noted that this encouraging outlook reflects the effectiveness of Egypt’s economic reform policies, despite challenging global conditions.

The government’s efforts have yielded a significant improvement in growth rates, with GDP increasing from 3.5% to 4.3% in the first two quarters of the current fiscal year. Growth is anticipated to continue at around 4% for the remainder of the year.

The Minister stressed the government’s commitment to enhancing macroeconomic stability and fiscal consolidation, alongside the continued implementation of the National Structural Reform Program.

This program is designed to foster sustainable growth by improving the investment climate, supporting private sector participation, and prioritizing growth in tradable and export-oriented sectors.

Al-Mashat concluded by underscoring the government’s strategic shift towards growth driven by exportable sectors, emphasizing efforts to stimulate investment, localize industry, simplify investment procedures, and reduce customs clearance times, all aimed at achieving inclusive and sustainable economic development that creates jobs and raises living standards.