Egypt Prime Minister: The private sector is empowered to drive development
Prime Minister Mostafa Madbouly says that achieving macroeconomic conditions that support investor confidence and shape domestic and foreign investment decisions is crucial.
Egypt's Prime Minister has stated that the private sector is empowered to drive development. This transformation is part of a far-reaching economic agenda implemented between 2023 and 2026. The government has exceeded expectations in several reforms, with a key focus on empowering the private sector to lead national development efforts. This is supported by an $8 billion Extended Fund Facility (EFF) arrangement with the International Monetary Fund (IMF).
The reforms include a shift to a flexible exchange rate system, tightening monetary and fiscal policies to control inflation, strengthening social safety nets, and balancing the roles of the public and private sectors. The introduction of exchange rate flexibility was particularly vital, as it allowed market forces to determine the value of the Egyptian pound, enhancing the economy's competitiveness and resilience against external shocks.
Positive indicators of the economy's movement in the right direction include a real GDP growth of 4.4% in 2024/25, up from 2.4% in 2023/24. The economy also recorded robust growth of 5.3% in the third quarter of the fiscal year 2025/2026. Unemployment rates have decreased to 6.6% in 2024, and the inflation rate has reduced to 11.9% and 11.2% in January 2026, respectively.
The current account deficit has narrowed to 4.2% of GDP, reflecting strong remittances and tourism receipts. Market confidence has improved, evidenced by successful external issuances, foreign direct investment inflows, and record non-resident inflows into domestic debt markets.
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