Egypt’s Economic Growth Projected at 5.4% for FY 2026/2027 Amid Regional Uncertainty
📋 Key Takeaway: Egypt’s economy is projected to grow by 5.4% in FY 2026/2027, driven by key sectors like manufacturing and tourism.
Growth Projections and Economic Contributions
Egypt’s Minister of Planning and Economic Development, Ahmed Rostom, announced that the economy is expected to achieve a growth rate of 5.4% by the end of the fiscal year 2026/2027. This projection aligns with the government’s medium-term economic plan, which anticipates growth accelerating to 6.8% by the end of FY 2029/2030.
The minister emphasized that these estimates are based on a conservative growth scenario, taking into account ongoing uncertainties both regionally and globally. Key sectors are expected to contribute significantly to this growth, with manufacturing leading at 29%, followed by wholesale and retail trade at 11.3%, tourism at 9.3%, construction at 7.2%, and agriculture at 7%.
GDP Projections and Sector Performance
The gross domestic product (GDP) of Egypt is projected to reach approximately EGP 24.5 trillion in FY 2026/2027, a substantial increase from the EGP 21.2 trillion expected by the end of FY 2025/2026. The agriculture, industry, construction, and wholesale and retail trade sectors are anticipated to account for 62% of the GDP, underscoring their critical role in the nation’s economic framework.
Rostom also noted that the Egyptian economy has faced numerous domestic and external shocks over the past two decades, which have impacted growth sustainability. Despite these challenges, the government has been proactive in implementing its economic and social development strategies, achieving a growth rate of 4.4% in FY 2024/2025, a significant increase from 2.4% in FY 2023/2024.
Outlook Amid Regional Tensions
In an interview with Asharq Business during the Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington last April, Rostom projected that Egypt’s economy would grow between 4.8% and 5% during the third quarter of FY 2025/2026. This outlook reflects the government’s commitment to navigating regional tensions while fostering economic stability.
Frequently Asked Questions
What is Egypt’s projected economic growth for FY 2026/2027?
Egypt’s economy is expected to grow by 5.4% in FY 2026/2027.
Which sectors are expected to drive Egypt’s economic growth?
Key sectors include manufacturing, wholesale and retail trade, tourism, construction, and agriculture.
What is the projected GDP for Egypt in FY 2026/2027?
The projected GDP is around EGP 24.5 trillion.
How has Egypt’s economy performed in the past fiscal years?
Egypt achieved a growth rate of 4.4% in FY 2024/2025, up from 2.4% in FY 2023/2024.
What are the implications of regional tensions on Egypt’s economy?
Regional tensions have historically posed risks to economic growth, necessitating cautious planning and policy implementation.
