Cairo: Minister of Planning and Economic Development Ahmed Rostom announced that Egypt's economy has demonstrated resilience by successfully navigating five major shocks over the past six years while maintaining a growth trajectory. He emphasized the government's proactive measures to mitigate the impact of the current geopolitical crisis, which include rationalizing public spending, redirecting subsidies such as energy support toward vulnerable groups, and enhancing exchange rate flexibility to safeguard macroeconomic stability.
According to State Information Service Egypt, Rostom made these remarks during an annual meeting organized by the American Chamber of Commerce in Egypt under the theme 'Egypt's New Economic Development Plan.' The meeting was attended by Chamber Chairman Omar Mehanna and several ministers and officials. Rostom highlighted that the global economy is currently facing a delicate phase marked by heightened uncertainty amid overlapping crises affecting financial markets and trade flows. He noted that expectations for recovery by 2027 are contingent on markets' ability to absorb shocks, particularly in the energy sector.
Rostom pointed out that persistently high oil prices and supply chain disruptions pose significant challenges, as cited by World Trade Organization estimates indicating slower growth in goods trade, which could affect revenues from key trade corridors. Despite these challenges, Rostom said there are promising opportunities for countries with production capacity in sectors with rising demand, such as agricultural goods, fertilizers, and tourism, where indicators are showing gradual improvement.
He stressed the importance of strengthening the role of the private sector as a key partner in deepening local manufacturing. Rostom mentioned ongoing coordination with the ministries of industry and investment to advance this approach and encourage companies to adopt cost management and productivity-enhancing policies.
Discussing the investment plan for the coming fiscal year, Rostom noted that an unprecedented level of digital integration has been achieved between the databases of the planning and finance ministries, allowing real-time monitoring of government spending with a high degree of transparency. He outlined key targets of the 2026/2027 development plan, including growth of 5.4%, rising to 6.8% by the end of the medium-term plan in 2029/2030. Five real sectors are expected to contribute 64% of targeted growth: manufacturing (29%), trade (11.3%), tourism (9.3%), construction (7.2%), and agriculture (7%).
Total investments are projected at 3.7 trillion Egyptian pounds, with 1.5 trillion pounds in public investments (41%) and 2.2 trillion pounds in private investments (59%). The plan aims for a domestic investment rate of 17% of GDP, rising to 20% by the end of the plan, with the private sector's share increasing to 64%.
The minister also mentioned initiatives to establish production clusters for small farmers in partnership with the private sector and the implementation of a comprehensive strategy to support entrepreneurship and startups. On digital transformation and expenditure governance, Rostom highlighted that real-time digital integration has been achieved between the planning and finance ministries for the first time in a decade, reducing data lag and enabling data-driven decision-making.
He reiterated the government's focus on partnering with the private sector to increase value added, noting the formation of specialized technical and ministerial committees to support innovation, startups, and entrepreneurs. Concluding his remarks, Rostom stated that the government is committed to promoting infrastructure investment through development partners while reducing associated risks, asserting that the Egyptian economy has the fundamentals needed to overcome challenges and achieve strong, sustainable growth.