Egypt's Economic Development Plan for 2025/2026: A Balanced Approach to Resilience and Growth

Egypt's Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat presented the draft economic and social development plan for the fiscal year 2025/2026 to the Senate, emphasizing its focus on strengthening the economy's resilience against crises and leveraging untapped opportunities for inclusive growth and sustainable development. The plan adopts a balanced approach, prioritizing public investment and leveraging private sector participation to drive economic growth. Notable improvements in the Egyptian economy's performance indicators have been recorded, with a growth rate of 3.5% in the first quarter and 4.3% in the second quarter of the fiscal year 2024/2025.

Key Takeaways:

• The 2025/2026 development plan is the first prepared by the Ministry of Planning, Economic Development and International Cooperation after the merger of the ministries of planning and economic development and international cooperation.
• The plan is consistent with the ministry's new framework, "Sustainability and Financing for Economic Development," which links development plans and strategies at the national and sectoral levels, and maximizes the utilization of local and foreign financing sources.
• The plan maintains public investment limits in line with fiscal discipline goals, creating more space for achieving macroeconomic stability and allowing the private sector to lead development efforts.
• The plan incorporates advanced planning tools and methodology, introduced by the Ministry to improve the efficiency of public investment, track international financing, and monitor performance.
• The plan focuses on human development, allocating about 700 billion Egyptian pounds to human development sectors (education, health, and other social services) in the 2025/2026 plan, an increase of more than 56% compared to the 2024/2025 plan.
• The plan also prioritizes industries and innovation, stimulating and developing promising industries based on innovation, technical and knowledge progress.
• The private sector is expected to be the driving force of the economy, with the state providing necessary financing resources and incentives to stimulate innovation and entrepreneurship.

Statistics:

• The Egyptian economy recorded a growth rate of 3.5% in the first quarter and 4.3% in the second quarter of the fiscal year 2024/2025.
• The plan allocates about 700 billion Egyptian pounds to human development sectors (education, health, and other social services) in the 2025/2026 plan, a 56% increase compared to the 2024/2025 plan.
• The plan allocates about 327 billion Egyptian pounds in public investments to the health, education, scientific research, and other services sectors, representing more than 28% of the total public investments in the same year.

Sources:

• (Middle East News Agency), "Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat reaffirms the importance of the economic and social development plan for the upcoming fiscal year 2025/2026."