Egypt’s economic growth: the success of a new strategy
Egypt’s economic growth accelerated in the second quarter of 2025. Minister of Planning and Economic Development Rania Al-Mashat highlighted the key role of the industrial sector in this process. Other growth drivers were the development of a green economy and GDP-enhancing technologies.
Analysts expect the positive momentum to continue throughout the fiscal year. However, business and government efforts need to be coordinated to achieve sustainable results. The country’s economic stability is ensured by two main sources of financing – government and international investment. They also provide the basis for the implementation of structural reforms.
The Minister noted that financing has gone beyond project support in recent years. Its possibilities have expanded considerably and include:
– public policy;
– inter-ministerial coordination;
– resource mobilisation efforts.
Development strategy
Egypt is orienting itself towards qualitative economic growth in various spheres. The authorities are concentrating their efforts on developing human potential as an instrument of prosperity. Special attention is being paid to the development of industry and the modernisation of its sectors, and programmes are being implemented to create jobs and support small and medium-sized enterprises.
The country is focusing on qualitative economic growth in various areas. At the same time, the government is actively implementing the principles of sustainable development. These provide a solid long-term basis for attracting investment and strengthening economic stability.
It is also important to note the role of green energy and digital transformation in the country’s prosperity. The government has adopted a development strategy based on competitive advantages. Among them are:
– a diverse economy;
– a stable industrial base;
– availability of a skilled labour force.
The combined efforts of business and government are already producing tangible results. In recent years, there has been a marked increase in entrepreneurial activity in the country. Progress is particularly evident in the digital economy, fintech and e-commerce.
Egypt’s economic model
Al-Mashat noted that Egypt is moving towards a new economic model. The country is now focusing on trade and exports. The emphasis is on industrial production for foreign markets. This transition allows for value addition, sectoral efficiency and job creation.
In addition, the country is actively developing the green energy sector, strengthening its position as one of the regional leaders in this field. Agriculture remains an important sector. Together with trade, it is a major contributor to economic growth.
With regard to investment, the authorities have introduced a ceiling on public investment. This approach has improved expenditure regulation and optimised revenues for priority sectors. Experts also note an increase in private investment, which contributes to the growth of foreign exchange reserves.
