Egypt's Minister of Planning and Economic Development, Dr. Ahmed Rostom, stated that the Egyptian state is adopting a proactive approach to confront global economic challenges. He pointed out that the Egyptian economy has demonstrated significant resilience and the ability to withstand five major shocks over the past six years while maintaining a growth trajectory.
This statement was made during the keynote address he delivered at the annual meeting organized by the American Chamber of Commerce in Egypt, titled "Egypt's New Economic Development Plan," attended by several ministers, officials, and business community representatives. He also participated in a discussion session moderated by Dr. Abla Abdel-Latif, Executive Director of the Egyptian Center for Economic Studies.
Event Details
The minister explained that the global economy is currently undergoing a critical phase characterized by high levels of uncertainty, amid intertwined crises affecting financial markets and international trade. He noted that the recovery of the global economy by 2027 depends on the markets' ability to absorb shocks and contain tensions, particularly in energy markets.
He added that the continued rise in oil prices and supply chain disruptions represent a major challenge, in light of World Trade Organization estimates regarding the slowdown in goods trade growth. He affirmed that these challenges present promising opportunities for sectors such as agriculture, fertilizers, and tourism, which have begun to show gradual improvements in their performance indicators.
Background & Context
The Egyptian government is seeking to implement a package of measures to regulate and rationalize public spending while maintaining financial discipline to ensure macroeconomic stability. Additionally, support has been redirected to the most vulnerable groups, and exchange rate flexibility has been enhanced to cope with global changes.
The minister emphasized the importance of strengthening the role of the private sector as a key partner in achieving development, especially in areas such as deepening local manufacturing and strengthening value chains. He mentioned ongoing coordination with relevant authorities to support this direction and encourage companies to increase productivity and improve operational efficiency.
Impact & Consequences
The minister revealed unprecedented digital integration between the Ministries of Planning and Finance, enabling real-time monitoring of government spending and enhancing the efficiency and transparency of public resource management. This integration supports decision-making based on accurate foundations and enhances the effectiveness of economic policies.
The development plan for the fiscal year 2026/2027 aims for an economic growth rate of 5.4%, increasing to 6.8% by the end of the medium-term plan (2029/2030). The government also targets total investments to reach approximately 3.7 trillion Egyptian pounds, including 1.5 trillion pounds in public investments and 2.2 trillion pounds in private investments.
Regional Significance
These steps are part of Egypt's efforts to enhance its economic position in the region, as it seeks to attract foreign investments and strengthen international partnerships. Furthermore, improving economic performance in Egypt could contribute to regional stability and enhance opportunities for economic cooperation among Arab countries.
In conclusion, the Minister of Planning and Economic Development stressed the state's commitment to enhancing international partnerships and stimulating investment in infrastructure, in collaboration with development partners, which contributes to reducing risks and increasing the attractiveness of the Egyptian economy. He affirmed that Egypt possesses strong fundamentals that qualify it to overcome challenges and achieve sustainable economic growth.