Dr. Al-Mashat said that the agency’s report expects the
Egyptian economy to maintain strong growth in the coming period. This growth
will be driven by key sectors such as agriculture, communications, tourism, and
wholesale and retail trade. She noted that Egypt, through the National
Narrative for Economic Development, aims to shift toward an economic model
focused on the most productive sectors with greater access to export markets.
This transformation, she added, will help reshape the structure of economic
growth.
She explained that Egypt is implementing integrated policies
through the same national framework, coordinating industrial, trade,
investment, and employment strategies. These efforts aim to strengthen the
growth of production sectors and the real economy. She added that growth
indicators for fiscal year 2024/2025, which showed that non-petroleum
manufacturing led the sectors contributing most to growth, confirm this
transformation and highlight the strong potential of the Egyptian economy.
She stated that S&P expects the positive impact on the
current account deficit to continue, with the deficit projected to decline to
around 4% between 2026 and 2028. This is supported by the steady growth of
goods and services exports and the state’s policy of exchange rate flexibility.
The agency noted that the decision to upgrade Egypt’s credit
rating reflects the reforms implemented since March 2024, including the
liberalization of the exchange rate regime. These reforms led to a sharp
rebound in GDP growth during fiscal year 2025.
S&P also praised Egypt’s continued implementation of
comprehensive structural reforms aimed at overcoming growth challenges. These
reforms include improving the governance of public investments and state-owned
enterprises, as well as expanding the role of the private sector. The agency
emphasized the government’s commitment to maintaining the public investment
ceiling to enhance spending efficiency and direct funds toward priority
sectors.
The report highlighted that the government published, for
the first time, revenue and expenditure data for 59 economic entities in the
budget statement starting from April 2024. This step demonstrates Egypt’s
commitment to financial transparency and the governance of public spending.
Al-Mashat affirmed that the S&P report aligns with the
goals of the National Narrative for Economic Development, which seeks to
achieve sustainable, private-sector-led growth. The strategy focuses on the
most productive sectors and aims to enhance the governance of public
investments within a more efficient and transparent framework for managing
public resources.