Egypt sets public investment ceiling for FY2025/26 at EGP 1.15T: Al-Mashat
Updated 5/13/2025 7:46:00 AM
Arab Finance: Egypt set its public investment ceiling for fiscal year (FY) 2025/2026 at approximately EGP 1.158 trillion, Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, announced.
Al-Mashat reviewed the economic and social development plan for FY 2025/2026 in a meting with the House of Representatives' budget plan committee, affirming that her ministry is monitoring the implementation of projects included in the plan.
The minister addressed the recent agreement between the US and China on trade tariffs, calling it a positive move that could reduce global economic tensions and uncertainty.
She also pointed out that geopolitical turmoil in the region affects the navigation movement in the Suez Canal, adding that repercussions of the Russian-Ukrainian war impact global financial markets, and strengthened expectations of inflationary pressures.
In this regard, inflation expectations in the US reached 6.7%, the highest rate since the 1980s, which could affect the US Federal Reserve's move towards monetary easing.
She affirmed the government’s commitment to applying public investment governance measures, directing public investments to priority projects that support the state's efforts to achieve sustainable development.
Additionally, she discussed structural reforms and intensive coordination with the European Union (EU) to obtain the second tranche of the Macro-Financial Assistance (MFA) mechanism and the budget support of €4 billion.
The minister also touched upon the components of Egypt’s gross domestic product (GDP) growth rates for the first and second quarters of FY 2024/2025, which rose to 3.5% and 4.3%, respectively.
She expected GDP at current prices to reach nearly EGP 20.4 trillion by the end of FY 2025/2026, compared to around EGP 17.2 trillion at the end of the current fiscal year.
Al-Mashat indicated that the growth was backed by non-petroleum manufacturing, communications and information technology, and tourism. She also reflected this on the economic reform measures implemented since March 2024.
Moreover, she addressed the unprecedented historic leap in remittances from Egyptians abroad, which reached more than $32 billion in 11 months.
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