Cairo:Egypt's economy expanded by 5.1% in the fiscal year 2025/2026, showcasing resilience in the face of regional tensions, according to the Finance Ministry.

According to State Information Service Egypt, the Finance Ministry's announcement came after Fitch Ratings affirmed Egypt's credit rating at 'B' with a stable outlook. The ministry attributed the economic growth to robust manufacturing activity and the expansion of the communications and information technology sector.

During the fiscal year 2025/2026, Egypt achieved a primary budget surplus of 4.9% of GDP, while the overall budget deficit decreased to 5.8%. Tax revenues saw a 27% increase, attributed to government tax facilitation measures, without the imposition of new tax burdens.

The ministry also highlighted a nearly 65% rise in private-sector investment, with ongoing support for business activity, production, and exports. Nonetheless, high debt-servicing costs remain the country's most significant fiscal challenge, particularly in light of elevated interest rates.

To address these challenges, the ministry's medium-term debt management strategy focuses on extending repayment periods, diversifying financing sources, and reducing refinancing risks. It emphasized that sustaining large primary budget surpluses would be crucial for decreasing public debt and debt-servicing costs over time.