Ahmed Kamel – Egypt Daily News
Egypt is approaching a pivotal moment in its economic trajectory, with 2026 expected to mark a major turning point for macroeconomic performance following a series of fiscal, monetary and structural reforms, according to Minister of Planning, Economic Development and International Cooperation Rania Al-Mashaat.
Speaking on Saturday during a meeting with military attachés nominated for overseas postings, Al-Mashaat said Egypt is on track to exceed 5 percent economic growth in the current fiscal year, with longer-term ambitions to reach growth rates of up to 7 percent. She described these targets as essential for expanding employment opportunities and ensuring that development gains translate into tangible improvements in citizens’ lives.
Al-Mashaat noted that international institutions have issued positive assessments of Egypt’s recent economic policies, citing improved stability and the government’s ability to overcome a range of domestic and external challenges. She added that economic growth has been rising steadily since July 2024, driven primarily by productive sectors led by the private sector.
Industry, tourism, and information and communications technology have emerged as the main engines of growth, she said, emphasizing that these sectors are overwhelmingly private-sector driven. Tourism, for example, is almost entirely operated by private businesses, while manufacturing spans a wide range of activities including automotive production, chemicals, garments, textiles, household goods and broader industrial manufacturing.
Industrial output has shown strong momentum, a trend that has been reflected in a significant increase in Egyptian exports. Al-Mashaat also highlighted the strong recovery of the tourism sector, forecasting that Egypt will receive around 19 million tourists during the current year. She noted that tourism nights recorded in the final quarter of the fiscal year were the highest on record, signaling robust demand and improved sector performance.
She added that the Suez Canal’s performance returned to positive territory in the quarter ending in September, attributing the recovery in part to regional de-escalation efforts supported by President Abdel Fattah El-Sisi and U.S. President Donald Trump.
Looking ahead, Al-Mashaat stressed that 2026 would represent a turning point for Egypt’s economy, as the impact of financial and monetary reforms becomes more visible alongside continued structural reforms. She said the government is working to open new economic horizons and build a different growth model that capitalizes on heavy investments in infrastructure, ports and logistics zones, while shifting focus toward higher-productivity sectors.
The development model Egypt is pursuing, she explained, prioritizes productive sectors such as industry, tourism, technology and construction, while recognizing that sustained reform cannot succeed without macroeconomic stability. She underscored that productive sectors are central to job creation, with industry, tourism, and ICT among the largest absorbers of labor.
Al-Mashaat also pointed to the importance of completing the fifth and sixth reviews under Egypt’s program with the International Monetary Fund, saying continued reform policies would further strengthen positive economic trends in 2026.
She highlighted Egypt’s national economic development narrative, which aims to transition the economy toward higher-productivity growth. The second edition of this framework includes a dedicated focus on human development, she said, stressing that macroeconomic stability remains the foundation for sustainable development. This stability, she added, depends on predictable fiscal and monetary policies, strong governance of public investments, fiscal discipline, and effective mobilization of domestic resources.
According to the minister, structural reforms also support Egypt’s green transition and help unlock new pathways for economic development. She noted that her ministry is working to deepen partnerships with international financial institutions, United Nations agencies and the private sector to mobilize development finance more effectively.
Egypt’s strong international relationships, long-standing partnerships, and proven ability to design and implement large-scale projects have enhanced its access to concessional financing, Al-Mashaat said. Such funding, she added, is less costly than borrowing from international markets and allows Egypt to finance development projects without placing additional pressure on public debt or shortening its maturity profile.
Taken together, she concluded, these efforts position Egypt to enter a new phase of growth and stability, with 2026 shaping up to be a decisive year for the country’s economic transformation.
